In India, property prices drop in eight cities

Home prices in India dipped in the first quarter after a year of steady increases.

Eight of the 15 cities in the National Housing Bank's index posted declines in the quarter ended in March, in what analysts viewed as a correction in the market. Prices were still up in Mumbai, Chennai and five other cities, but only marginally.

NHB officials attributed the declines to high prices and rising interest rates.

"Some of the markets like Bangalore had seen a big increase in property prices over the last one year," National Housing Bank chairman and managing director RV Verma told the Economic Times. "Now the market seems to have responded to the slackness in demand and higher interest rates."

Interest rates have risen from 8 to 11.5 per cent

One of the biggest drops was in the tech-heavy city of Bangalore, where prices fell 12.87 per cent from the previous quarter. The biggest increase was a 5.6 per cent jump in Pune.