T’puram: Thiruvananthapuram is emerging as one of the key cities driving India’s residential property price momentum, with the capital figuring among the major contributors to the rise in the Reserve Bank of India’s house price index (HPI) during the first quarter of 2026-27.The all-India HPI increased 1.1% sequentially during April-June, with Chandigarh, Lucknow and Thiruvananthapuram primarily driving the quarterly increase, according to the latest RBI data. The index also recorded an annual growth of 3.6% during the quarter, with Thiruvananthapuram again figuring among the cities that contributed significantly to the rise. Thiruvananthapuram is the only city from Keralam which secured a place in the ranking.The RBI index, which uses transaction-level data obtained from property registration authorities, covers 18 major cities. Thiruvananthapuram’s inclusion among the cities supporting both the quarterly and annual increase indicates that the capital’s residential market is gaining momentum even as the overall pace of house-price growth across India has moderated.Industry stakeholders attribute the city’s housing demand to a combination of expanding IT and technology activity, infrastructure development, improving connectivity and growing interest from non-resident Indians. Areas around Technopark and the city’s major growth corridors have witnessed increasing residential activity, while large infrastructure projects such as Vizhinjam port and proposed urban mobility projects are expected to strengthen the city’s long-term economic prospects.Trivandrum Chamber of Commerce and Industry (TCCI) president S N Raghuchandran Nair said the RBI data reflects a huge transformation taking place in the capital’s economy.“Thiruvananthapuram is no longer only a govt-centric city. The expansion of the IT sector, infrastructure investments, Vizhinjam and the city’s growing importance as a technology and services hub are creating sustained demand for housing. The rise in property prices has to be viewed in the context of this structural change in the city’s economy,” Nair said. He also added that the Gulf war has prompted many NRIs based in the Gulf region to choose Thiruvananthapuram as the ideal residential destination.The city’s residential market is also benefiting from its position as a major centre for healthcare, education and technology services. The combination of these sectors has created demand not only from local end-users but also from professionals, investors and NRIs seeking residential assets in the capital. Nair has previously highlighted the city’s growing attractiveness for people seeking access to quality healthcare and education, along with improved connectivity and relatively better quality of life.The infrastructure pipeline could further influence property values. The Vizhinjam International Seaport, Technopark expansion, proposed Thiruvananthapuram Metro, outer ring road and other connectivity projects are expected to open new development corridors and increase the attractiveness of locations outside the city’s traditional residential centres. The city’s updated master plan also envisages growth across IT, tourism, healthcare, housing and other sectors, with transit-oriented development forming part of the planning framework.The latest RBI figures, however, do not suggest an unchecked price surge. While the HPI rose 1.1% sequentially, annual growth moderated from 4.5% in the previous quarter to 3.6% in Q1 FY27.
