In the third quarter of 2023, real estate market prices in India increased by 5.9%, with Turkey maintaining its lead on the Knight Frank Global House Price Index. In Q3 2023, India surged 18 positions to secure the 14th spot in the global house price index. Home prices in the country rose by 5.9% year-on-year during the same quarter, as reported by Knight Frank’s Global House Price Index.
During Q3 2023, India climbed 18 positions, reaching the 14th spot in the global house price index. Home prices in the country increased by 5.9% year-on-year, as indicated by Knight Frank’s Global House Price Index for the same quarter
Global House Price Index Is the watchdog that keeps track of the real estate market prices of 56 Countries in local currencies.
India’s residential market has seen growth, overcoming challenges like higher home loan rates and inflation threats. Stable economic growth has provided financial security, while government initiatives during the pandemic, such as incentives to home buyers, have spurred sales and accelerated Real estate market activity, according to the report.
Inflation has made borrowing more expensive, many people in India are still eager to buy homes. This is because the country’s strong economy and people’s growing aspirations to buy a home are fueling a higher demand for houses in key residential markets,” explained Shishir Baijal, Chairman and Managing Director of Knight Frank India.
Global house prices are on the rise despite increased interest rates, the main tool used by central banks to combat high global inflation. The average annual price growth is at 3.5%, approaching the pre-pandemic ten-year average of 3.7%. Out of the 56 monitored real estate markets, 35 saw annual price growth, while 21 experienced declines.
Turkey has consistently held the top spot since Q1 2020, showing the strongest growth with an annual (89.2%) and quarterly (18.1%) increase. The top five spots are dominated by the southeastern corner of Europe, with Greece (14.0%), Croatia (13.7%), and North Macedonia (11.0%) all experiencing robust annual growth.
In the Asia-Pacific region, Japan stands out with 6.3% annual growth, followed by India with 5.9% annual growth.
Liam Bailey, the head researcher at Knight Frank, said, “It’s surprising that house prices worldwide are staying strong even though it’s more expensive to get a mortgage. But people having good savings, getting higher pay than inflation, and not many houses for sale are all helping the market.” He also mentioned that in 2024, the main problem for housing markets will be low liquidity, with fewer houses being sold. He said that only if interest rates go down, more houses will be sold.
