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Metropolitan House Prices In India: Do They Converge?

Author

Listed:
  • Goodness C. Aye

    (Department of Agricultural Economics, University of Agriculture, Makurdi, Nigeria)

  • Samrat Goswami

    (Department of Rural Management and Development, Tripura University)

  • Rangan Gupta

    (Department of Economics, University of Pretoria)

Abstract

The paper examines the long-run behavior of house prices by addressing the issue of price convergence or divergence across fifteen metropolitan cities in India. Using available city-level quarterly data covering the period 2007-2011 and applying the Im, Pesaran and Shin (2003) panel unit root test, it is found that relative price levels among various metropolitan cities in India do not converge. This implies that the Law of One Price does not hold in the Indian housing market, hence the different metropolitan house markets operate independent to one another.

Suggested Citation

  • Goodness C. Aye & Samrat Goswami & Rangan Gupta, 2012. "Metropolitan House Prices In India: Do They Converge?," Working Papers 201220, University of Pretoria, Department of Economics.
    • Handle: RePEc:pre:wpaper:201220
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    Cited by:

    1. Nicholas Apergis & Beatrice D. Simo-Kengne & Rangan Gupta, 2015. "Convergence In Provincial-Level South African House Prices: Evidence From The Club Convergence And Clustering Procedure," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 27(1), pages 2-17, March.
    2. Rajesh Raj & Rath D.P., 2022. "House Price Convergence: Evidence from India [Convergence des prix des logements : le cas indien]," Working papers 893, Banque de France.
    3. Raj Rajesh & Deba Prasad Rath, 2023. "House price convergence: evidence from India," Asia-Pacific Journal of Regional Science, Springer, vol. 7(3), pages 721-747, September.

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    More about this item

    Keywords

    House Prices; Law of One Price; Price Convergence; India;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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