Knight Frank Global House Price Index – Q3 2023 noted that India climbed 18 spots up to 14th rank in the global house price index in Q3 2023. The price increase of 5.9% year-on-year (YoY) in 3 2023 (quarter ending September 2023), making a significant statement. House prices remained robust in the face of higher debt costs, with average prices across the 56 markets covered by the Knight Frank’s Global House Price Index growing at an average of 3.5% YoY in September 2023, up from 2.2% in the previous quarter.
The global house price index tracks nominal and real price growth across 56 countries in local currencies.
Annual global house prices continue to rise despite rising interest rates which have been the central banks' primary weapon to combat elevated inflation levels globally. Average annual price growth stands at 3.5%, closely approaching the pre-pandemic ten-year average of 3.7%. Among the 56 markets monitored, 35 experienced annual price growth, while 21 witnessed price declines.
Turkey has held the top spot in the rankings since Q1 2020 and once again sees the strongest growth on our ranking with an annual (89.2%) and quarterly (18.1%) increase. The south-eastern corner of Europe dominates the top five spots of our rankings, with Greece (14.0%), Croatia (13.7) and North Macedonia (11.0%) all showing robust annual growth.
Japan is the standout performer in the Asia-Pacific region, with 6.3% annual growth, followed by India with 5.9% annual growth. The remarkable growth in India’s residential market, despite the challenges of higher home loan rates as well as threats of inflation, has largely been the result of stable economic growth which has lent itself to providing greater financial security to end-users. Furthermore, at the onset of the pandemic, central and state governments adopted steps to boost home sales through sops to home buyers, which triggered the market leading to acceleration in sales.
