India positions as 14th Highly-Priced Residential Real Estate market

According to Knight Frank’s global house price index, India jumps 18 points up to 14^th rank in the third quarter of 2023. In India, the prices of Housing increased 5.9 percent year-on-year that results in momentous upward force.

Further, Knight Frank’s Global House Price Index states that the global home prices across 52 markets rose at an average rate of 3.5 percent in September 2023. The global home prices stirred up by 2.2 percent in the earlier quarter.

As specified by Knight Frank, regardless of the higher rates of home loan challenges and inflation threats, the Indian residential market’s growth stayed constant with the economic growth.  At some point in pandemic, the state and central government of India provides offerings & concessions that triggered the residential market.

Shishir Baijal, CMD of Knight Frank India says, “"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,”

The housing market of India has been skyrocketing. As many as 3.49 lakh units were sold in the major 7 cities of India by the end of the third quarter of 2023 whereas 3.65 lakh units sold in 2022.

In parallel, the entire sales value of sold inventory of housing jumped up to Rs. 3.48 lakh crore. In 2023, the first nine months, the total sales value of residential properties is already crossed all the sales happened in 2022.

MD of Poulomi Estates, Prashant Rao states, “Property prices remained stagnant or experienced a decline for 5-6 years starting from 2013. During this period, the demand was notably low. However, post-Covid, we observed a substantial revival in demand, surpassing the previous highs”.

In the rise in property prices, there are various factors contributed such as pent-up demand, a demand to advance, a keen to invest more for modern and amazing amenities. In addition, the advancements in economic scene and developments in infrastructure escorted to a rise in property costs. Though the price of the properties evidently increased across the nation, the state Hyderabad constantly out bounded other major cities year-on-year by exhibiting the maximum property price due to a corporate arrivals into the base cities. And this trend is hoped to continue in upcoming days.