India leaps 18 places to take the 14th slot in the world in Q3 2023 for yearly home price movement.

By Bricksnwall | 2023-12-16

India leaps 18 places to take the 14th slot in the world in Q3 2023 for yearly home price movement.

In Q3 2023, real estate prices in India increased by 5.9% over the previous year; Turkey remains at the top of Knight Frank's Global House Price Index.

In Q32023, India moved up 18 places to take 14th place in the worldwide house price index. The Knight Frank Global House Price Index for the third quarter of 2023 shows that national home prices rose 5.9% year over year.

Despite rising borrowing costs, house prices around the world have remained strong. As of September 2023, average prices in the 56 markets included in the Knight Frank Global House Price Index were rising at an average annual rate of 3.5%, up from 2.2% in the previous quarter.

 

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The Global House Price Index monitors nominal and real price growth in local currencies for 56 different nations.

 

Notwithstanding the difficulties posed by rising house loan rates and the possibility of inflation, India's residential market has expanded thanks in large part to the country's steady economic growth, which has made it possible to give end users more financial stability. Additionally, the paper stated that during the start of the epidemic, federal and state governments took action to increase home sales by offering incentives to prospective homeowners. This sparked the market and caused an acceleration of home sales.

 

According to Shishir Baijal, Chairman and Managing Director of Knight Frank India, "the strong 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" in light of the higher interest cost environment brought on by higher levels of inflation.

 

Despite rising interest rates, which have been the main tool used by central banks to combat high levels of global inflation, annual house prices continue to grow. The ten-year average of 3.7% prior to the pandemic is being approached by the average yearly price growth of 3.5%. Of the 56 markets under observation, 21 saw price decreases and 35 saw annual price increases.

 

Turkey has been at the top of the rankings since Q1 2020 and has experienced the fastest growth, rising 18.1% on an annual basis and 89.2% on a quarterly basis. The top five rankings are dominated by countries in southeast Europe, with North Macedonia (11.0%), Greece (14.0%), and Croatia (13.7%) all exhibiting strong annual growth.

With 6.3% annual growth, Japan leads the Asia-Pacific area, followed by India with 5.9% annual growth.