Out of 56 countries – India ranked 47th for housing price appreciation.

In terms of appreciation in housing costs, India ranks 47th in the world as rates grew just gradually in the quarter of July-September by just 0.6%, according to multinational property advisor Knight Frank.

In the April-June 2019 quarter, India stood at 11th position with an increase in home prices of 7.7% year on year.

The latest report by Knight Frank – Global House Price Index Q3 2019 — that tracks residential movement across 56 countries and territories through official statistics worldwide has been released.

In terms of growth in residential property prices, India ranked at 47 among the 56 countries/territories with a marginal increase in house prices of 0.6 percent year-on-year (YoY). “Slow sales, high inventory and lack of liquidity with developers have limited home price hike,” the study said.

The regulations imposed on the industry by the government such as Real Estate (Regulations and Development) Act, 2016, Goods and Services Tax Act and the Benami Transactions (Prohibition) Amendment Act, 2016 have laid the groundwork for a stable end-user market. The regulations created a system of transparency.

According to the data, Hungary has led the index with a 15.4% annual price rise in this quarter, followed by 11.4% from Luxembourg and 10.4% from Croatia.

Slovakia rose by 9.7% and is at number 4, followed by Latvia (9%), Czech Republic (8.7%), China (8.5%), Jersey (8.5%), Mexico (8.4%) and Russia (8.1%).

Prices rose at an average annual rate of 3.7% across 56 countries and territories worldwide, which is the index’s slowest growth rate over the last six years.

In the year until September 2019, the majority of countries and regions reported static or positive growth.

Knight Frank India, CMD Shishir Baijal said, “In the last four years, the rise in residential prices in most of India’s top eight cities has been below retail inflation growth, which has helped to maintain interest in the end-users.”

Crisis in liquidity, high inventory overhangs and overall weak demand led to the rationalization of home prices, he said.

“Real estate developer’s focus on maintaining realistic price with their accurate product sizes that help to draw end-users and increase the confidence of buyers,” said Baijal.