Led by Tier 2 & 3 cities, India records 3.3% gains in 2017

Ranchi, Bhubaneshwar, Coimbatore, Nashik and Kanpur lead the house price growth; recording gains of 16%, 14%, 13%, 13% and 12% respectively

Bangalore, June 12, 2018: KnightFrank, the independent global property consultancy, launched the GlobalHouse Price Index for Q1 2018. The index tracks the movement in mainstreamresidential prices on a national basis across 57 markets using data fromofficial sources such as Central Banks and National Statistics Offices. Theindex allows investors and developers to compare the performance of mainstreamresidential markets around the world. Compiled on a quarterly basis usingofficial government statistics or central bank data the index’s overallperformance is weighted by the Gross Domestic Product (GDP) on a PurchasingPower Parity basis and the latest quarter’s data is provisional pending therelease of all the countries’ results. 

Results for Q1 2018: 

  • Led by tied 2 and 3 cities, India has recorded a 3.3% gain in 2017. Ranchi, Bhubaneshwar, Coimbatore, Nashik and Kanpur lead the house price growth recording gains of 16%, 14%, 13%, 13% and 12% respectively 

Rank

City

12-month % change

(Q4 2016-Q4 2017)

1

Ranchi

16%

2

Bhubaneswar

14%

3

Coimbatore

13%

4

Nashik

13%

5

Kanpur

12%

  

  • The index increased by 4.8% in the year to March 2018. House prices are rising in 86% of the 57 countries tracked by the index. 
  • Only 9% of the markets tracked registered price growth above 10%, down from 18% a year ago. 
  • Hong Kong leads the index for the first time since the second quarter of 2015, with average prices ending the 12 months to March, 14.9% higher. Since the index was first published in 2008, Hong Kong has held the top spot on ten different occasions – more than any other territory tracked. 
  • Analysis by world region shows Asia Pacific (5.7%) came in second after North America (6.6%). 
  • Europe’s recovery is now well-underway, closer analysis confirms 11 of the 15 strongest-performing housing markets globally were in Europe at the end of March 2018. 

Dr. Samantak Das, Chief Economist and NationalDirector - Research, Knight Frank India, said, “Thehousing market of the country represents a mixed bag as per our Global HousePrice Index Q1 2018 findings. While the major metros continue to languish inthe price growth dimension, it is the tier 2 & 3 cities like Ranchi,Bhubaneshwar, Coimbatore, Nashik and Kanpur which are leading the price gainsin 2017. The movement of ‘Housing for All’ that now finds public and privateparticipation alike has gathered steam in the smaller towns of the country. Toendure this momentum in the near future we hope there is a sustainable recoveryin housing demand.


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