India at 14th spot in housing cost rise in Jul-Sep with 5.9% growth: Report

India jumped 18 places to 14th rank in home price appreciation globally in September quarter, with nearly 6 per cent price rise year-on-year, according to Knight Frank India.

Real estate consultant Knight Frank's Global House Price Index tracks nominal and real price growth across 56 countries in local currencies.

Turkiye is at number one position with an annual 89.2 per cent appreciation, followed by Croatia (13.7 per cent), Greece 11.9 per cent, Colombia 11.2 per cent and North Macedonia 11 per cent.

"Annual global house prices continue to rise despite central banks' efforts to combat inflation through higher interest rates. Average annual price growth stands at 3.5 per cent, closely approaching the pre-pandemic ten-year average of 3.7 per cent," Knight Frank said.

Among the 56 markets monitored, 35 experienced annual price growth, while 21 witnessed price decline.

"India climbed 18 spots to 14th rank in the global house price index in Q3 2023. The price increase of 5.9 per cent year-on-year (YoY) in Q3 2023 (quarter ended September 2023)," the consultant said.

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, it noted.

"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," Knight Frank India Chairman & Managing Director Shishir Baijal said.

Furthermore, he said the upsurge in urbanisation is providing additional momentum to infrastructure development, paving the way for emerging residential hubs in urban centres of India.

Hyderabad-based realty firm Poulomi Estates MD Prashant Rao said the housing demand and prices have improved post-COVID.

"Several factors contributed to the rise in property prices, including pent-up demand, a desire to upgrade, a willingness to spend more for better and modern amenities. While property prices surged significantly across the country, Hyderabad consistently outpaced other metros year-on-year," Rao said.