With Less Than 1% Growth In Home Prices, India Ranks 47th Globally
New Delhi: With meager 0.6 percent increase in home prices this year, India has ranked 47th among 56 countries in the Knight Frank Global House Price Index Q3 2019.
There are a host of reasons for paltry increase in the third quarter of this year as compared to the same period of last year which includes high unsold stock of homes, slow sales and severe liquidity crunch in the industry.
But the property consultancy has noted that the government has built in lot of safeguards for the real estate industry in the country by way of Benami Transactions (Prohibition) Amendment Act 2016, Goods and Services Tax Act and the Real Estate (Regulations and Development) Act 2016 which have made the industry robust.
In the previous edition of the same report, India had ranked 11th with 7.7 percent increase in prices.
The Index tracks increase or decrease in residential prices in 56 countries. Hungary has lead the index in Q3 with 15.4 percent yearly jump in home prices. Luxembourg stood second with 11.4 percent increase and Croatia stood third with 10.4 percent jump.
Home prices in these 56 countries grew at a yearly rate of 3.7 percent on average, the lowest rate in six years as per the index. However, majority of the nations reported a positive or static 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," said Shishir Baijal, Chairman and Managing Director of Knight Frank India.