India made significant strides, elevating 18 spots to secure the 14th rank in the global house price index during the third quarter of 2023, marking a notable 5.9% year-on-year increase in home prices. Knight Frank’s Global House Price Index reported this surge, indicating robust house prices on a global scale across the 56 markets covered.
Globally, house prices maintained resilience despite increased debt costs. The average prices across these 56 markets experienced a year-on-year growth of 3.5% in September 2023, up from 2.2% in the previous quarter.
This global house price index meticulously tracks nominal and real price growth in local currencies across 56 countries.
India’s residential market showcased growth despite challenges such as higher home loan rates and looming inflation threats. Stable economic growth played a pivotal role, fostering financial security for end-users. Additionally, government initiatives during the pandemic stimulated home sales through incentives for homebuyers, propelling the market and accelerating sales, as per the report’s observations.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, highlighted, “The country’s robust economic fundamentals and the increasing allure of residential real estate are fueling heightened demand in key residential markets.”
Despite rising interest rates globally aimed at combating inflation, the annual global house prices continued to ascend. The average annual price growth of 3.5% is nearing the pre-pandemic ten-year average of 3.7%. Among the 56 monitored markets, 35 witnessed annual price growth while 21 observed price declines.
Turkey maintained its top position since Q1 2020 and displayed robust growth with an 89.2% annual and 18.1% quarterly increase. Notably, southeastern European nations dominated the top rankings, with Greece (14.0%), Croatia (13.7%), and North Macedonia (11.0%) showing strong annual growth.
In the Asia-Pacific region, Japan exhibited remarkable performance with 6.3% annual growth, closely followed by India at 5.9% annual growth.
Liam Bailey, Global Head of Research at Knight Frank, remarked, “The resilience of global house prices amidst rising mortgage costs is surprising. However, substantial savings, wage increases surpassing inflation, and limited available stock for sale are bolstering the market.”
Bailey further emphasized the anticipated challenge in 2024, foreseeing low market liquidity, with sales volumes declining by up to a quarter compared to recent peaks. He highlighted that only a shift towards lower interest rates could elevate sales activity in the housing market.
(Source: Hindustan Times)
Also read: India Climbs 18 Spots to 14th Rank in Global House Price Index for Q3 2023