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India climbed 18 spots up to 14th rank in the global house price index in the third quarter of 2023, data compiled by real estate consultant Knight Frank India showed.
The price increase of 5.9 per cent year-on-year during the said quarter made a significant statement about the country's real estate sector. House prices remained robust in the face of higher debt costs, with average prices across the 56 markets covered by the Knight Frank's Global House Price Index, growing at an average of 3.5 per cent on a yearly basis in September 2023, up from 2.2 per cent in the previous quarter. The Global House Price Index tracks nominal and real price growth across 56 countries in terms of their local currencies. "Annual global house prices continue to rise despite rising interest rates which have been the central banks' primary weapon to combat elevated inflation levels globally," the real estate consultant said. "Average annual price growth stands at 3.5 per cent, closely approaching the pre-pandemic ten-year average of 3.7 per cent. Among the 56 markets monitored, 35 experienced annual price growth, while 21 witnessed price decline." Turkey has held the top spot in the rankings since Q1 2020 and once again sees the strongest growth. The south-eastern corner of Europe dominates the top five spots of the rankings, with Greece (14.0 per cent), Croatia (13.7 per cent) and North Macedonia (11.0 per cent) all showing robust annual growth. Japan is the standout performer in the Asia-Pacific region, with 6.3 per cent annual growth, followed by India with 5.9 per cent annual growth. The remarkable growth in India's residential market, despite the challenges of higher home loan rates as well as threats of inflation, has largely been the result of stable economic growth which has lent itself to providing greater financial security to end-users, the consultant said. "In light of an increased interest cost environment stemming from heightened inflation levels, the robust domestic economic fundamentals, and the escalating aspirational attributes of residential real estate, are driving heightened demand among homebuyers in prominent residential markets within the country," said Shishir Baijal, Chairman and Managing Director, Knight Frank India. "Furthermore, the upsurge in urbanisation is providing additional momentum to infrastructure development, paving the way for emerging residential hubs in the urban centres of India." (ANI)
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