bengaluru dec 8 reuters  house price rises in india will gradually accelerate over the coming years but undershoot consumer inflation at least until 2023 according to a reuters poll of property analysts who expect affordability to improve housing market activity was struggling before the covid19 pandemic as many home builders were still starved of cash after the government in 2016 removed high denomination banknotes from circulation demand from buyers was also not strong but unlike many property markets that experienced soaring house prices indias price growth slowed and activity took a hit as the coronavirus pandemic threw millions out of work and left thousands of housing projects unfinished indias onceroaring house prices rose only 24 during the first three quarters of 2021 a touch lower than last years 25 the weakest since the reserve bank of india rbi started compiling the data in early 2010 the nov 18dec 7 poll of 10 analysts predicted nationwide house prices to rise 225 and 375 in 2021 and 2022 respectively that is a downgrade from 250 and 450 expected in august if realised those annual increases would remain below consumer inflation which was forecast to average 52 and 54 in 2021 and 2022 in a separate reuters survey on monday but average indian house prices were forecast to rise 65 and 60 in 2023 and 2024 outstripping consumer price inflation by then the ongoing vaccination drive and reducing covid19 cases have buoyed consumer sentiment since the latter half of 2020 as homebuyers are returning to the market developers are slowly phasing out discount schemes said ankita sood director and head of research at rea india however amid the threat of new variants and uncertainty over resurgence of cases developers will increase property prices in close ranges especially in the readytomovein segment a city breakdown showed house prices in mumbai and delhi rising 250 and 275 next year respectively in bengaluru and chennai they were predicted in turn to increase 300 and 275 meanwhile the ultraeasy monetary policy that boosted housing activity over the past few years is expected to come to an end soon the rbi which slashed its key repo rate by a cumulative 115 basis points last year will make two 25 basis point increases next year taking borrowing costs to 45 a separate reuters poll showed home loan interest rates are at their lowestbest presently and this has significantly boosted housing sales in the last one year said anuj puri chairman at anarock property consultants as long as low home loan rate regime continues many firsttime homebuyers will come forward and buy their home and when these increase it may again force many buyers to hold off their decision still all nine analysts who responded to another question said affordability would improve over the next 23 years it was expected to worsen in other major housing markets an improving economic situation will improve the affordability of prospective customers though price firming will push the demand from premium to midmarket or affordable housing said ajay sharma managing director valuation services india at colliers it is expected both the rbi and the government will infuse initiatives to improve affordability until 2023 the only caution is the supply chain  if it is allowed to worsen then the interventions will not be able to offset the rising costs reporting by indradip ghosh polling by sarupya ganguly and swathi nair editing by mark potter