Property prices in seven cities across India dropped by 2.63 per cent to 17.6 per cent during the January to March quarter, according to the latest data released by the National Housing Bank.

Another five cities have shown a marginal change in prices in the same period.

However, three cities showed an increase in property rates by 2.6 per cent to five per cent.

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NHB's residential housing price index data or Residex for the first quarter of the 2011 calendar is a comparative study with the previous quarter.

Year-on-year, property prices have increased in all 15 cities covered under NHB Residex.

The latest NHB Residex results are in contrast to the previous quarter data. During October to December 2010, property prices went up in 13 out of the 15 cities surveyed, compared with the July to September 2010 data.

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In the remaining two cities, prices had either remained the same or dropped marginally.

When asked about the possible range of property price correction in the coming months, NHB chairman RV Verma refused to provide a figure. "We can't hazard any guess on property price correction as it may impact the market," Verma said at a press conference to discuss the trends in the housing sector. He added: "There are blips in the property market."

The expectation from the over-supply condition that exists now, prices should be corrected, according to Verma. Increase in interest rates has added to stock pile-up in real estate, officials indicated.

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The cities which have shown significant correction (drop in property prices) during January to March 2011 are Bengaluru (-17.6 per cent), Kochi (-14.92 per cent), Faridabad (-6.37 per cent), Hyderabad (-4.6 per cent), Surat (-3.76 per cent), Bhopal (-3.55 per cent) and Jaipur (-2.63 per cent).

In Kolkata, prices dipped marginally by 0.77 per cent. Among others, Ahmedabad showed an increase of 0.4 per cent, Chennai 1.66 per cent, Mumbai 1.39 per cent. Patna showed no change.

Of those which have witnessed an increase in prices are Pune (5.02 per cent), Lucknow (3.09 per cent), and Delhi (2.64 per cent).

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NHB is planning to add another five cities to the Residex this year, increasing the number to 20 cities. It also wants to widen the coverage --  localities within a city that are being considered for determining the prices.

This residential price index is aimed at bringing transparency in the property market and helping home buyers to make informed decisions.

The index is compiled from data sourced from lending institutions.