India ranks 47th globally in home price appreciation
Knight Frank, a leading international property consultancy, in its latest report – Global House Price Index Q3 2019 – has ranked India at the 47th spot among the 56 countries/territories tracked, in terms of appreciation in residential real estate prices, with a marginal 0.6% year-on-year (YoY) rise in home prices.
India stood at the 11th position in the previous edition of the report – Global House Price Index Q2 2019 – with a 7.7% YoY rise in home prices.
Slow sales, high inventory and lack of liquidity with developers have restricted rise in home prices. Also, regulations imposed by the government to ensure accountability in the system such as the Real Estate (Regulations and Development) Act, 2016, Goods and Services Tax Act and the Benami Transactions (Prohibition) Amendment Act, 2016 have laid the foundation for a healthy end-user market.
The Global House Price Index tracks the movement in mainstream residential prices across 56 countries and territories worldwide using official statistics. Hungary leads the index this quarter with 15.4% annual price growth, followed by Luxembourg at 11.4% and Croatia at 10.4%.
Prices across 56 countries and territories worldwide rose at an annual rate of 3.7% on average, which marks the index’s slowest rate of growth for over six years. Majority of the countries and territories registered a static or positive growth in the year to September 2019.
Key Findings of Global House Price Index Q3 2019
- India stood at the 47th rank in home price appreciation, with a marginal 0.6% YoY rise in home prices
- Hungary lead the annual rankings for the first time since 2010 with a 15.4% growth
- 91% of countries and territories registered static or positive growth in the year to September 2019
- 7 of the top 10 rankings were European countries and territories
- Prices across 56 countries and territories worldwide rose at an annual rate of 3.7% on average
- Index registered the slowest rate of growth in over six years
“During the last four years, the growth in residential prices in most of the top eight cities of India has been below retail inflation growth, which has helped in keeping the end-user interested. Liquidity crunch, high inventory overhang, and an overall sluggishness in demand have played their part in rationalising home prices. Real estate developers are focusing on keeping the prices realistic, with right-sizing their products, which is helping in attracting end users and improving buyers’ confidence,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India.