While India registered a marginal 0.6% YoY rise in home prices. Home prices across 56 countries rose at an annual rate of 3.7% on average.
By Varun Singh
India stood at 47th rank globally in home price appreciation. The average price rise in India is way below than the global price rise average. These are the insights that a report by Knight Frank and International Property Consultancy Firm.
The report – Global House Price Index Q3 2019 -states that in terms of appreciation in residential real estate prices, India witnessed 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. This is a huge downfall in its ranking.
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%.
Knight Frank Prime Global House Price Index Q3 2019
|Rank||Country/Territory||12-Month % Change(Q3 2018-Q3 2019)||6-Month % Change(Q1 2019-Q3 2019)||3-Month % Change(Q2 2019-Q3 2019)|
Source: Knight Frank Research
“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.
- 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