NEW DELHI, Dec 27: India ranks 47th in the world in terms of appreciation in housing prices as rates grew by only 0.6 per cent during July-September quarter over the year-ago period on slow demand, global property consultant Knight Frank said.
India stood at 11th position in the April-June quarter of 2019 with a 7.7 per cent year-on-year rise in home prices.
Knight Frank released its latest report — Global House Price Index Q3 2019 — that tracks the movement in mainstream residential prices across 56 countries and territories worldwide using official statistics.
The report 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 per cent year-on-year (YoY) rise in home prices.
“Slow sales, high inventory and lack of liquidity with developers have restricted rise in home prices,” the report said.
The 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.
As per the data, Hungary leads the index this quarter with 15.4 per cent annual price growth, followed by Luxembourg at 11.4 per cent and Croatia at 10.4 per cent.
Slovakia is at number four with home price rising by 9.7 per cent, followed by Latvia (9 per cent), Czech Republic (8.7 per cent), China (8.5 per cent), Jersey (8.5 per cent), Mexico (8.4 per cent) and Russia (8.1 per cent).
Prices across 56 countries and territories worldwide rose at an annual rate of 3.7 per cent 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.
“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,” Knight Frank India CMD Shishir Baijal said.
Liquidity crunch, high inventory overhang, and an overall sluggishness in demand have played their part in rationalising home prices, he added.
“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,” Baijal said. (PTI)
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