In recent years, India has witnessed a remarkable surge in residential property prices. This trend of escalating property values continues to hold strong, as indicated by the Knight Frank Global House Price Index report. According to this report, there has been a significant increase of 5.9% in property prices in India on an annual basis in the third quarter of this year. Consequently, India has climbed from the 18th to the 14th position globally in terms of property prices.

Factors Driving the Surge in Property Prices

The annual rise in property prices, averaging at 3.5%, as highlighted by the Knight Frank report, stems from various factors within India. In recent days, inflation has surged, leading to a consecutive increase in interest rates. Despite this, the property rates continue to soar due to the sustained stability in the country’s growth rate. This has bolstered financial security among individuals, leading them to prefer investing in properties even after the hike in interest rates. Additionally, both central and state governments are consistently taking significant steps to boost the real estate sector, reflecting positively in sales figures.

Countries Witnessing the Steepest Rise in Property Prices

Knight Frank’s report unveils a list of countries where residential property prices witnessed a substantial surge in 2023. Turkey tops this list with an annual growth rate of 89.20%. Croatia follows suit with a 13.7% increase in residential property prices, while Greece, Colombia, and North Macedonia saw increments ranging from 11.9% to 11%. India, positioned at 14th place on this list, experienced a 5.9% increase in property rates during the third quarter, between July and September.

The consistent rise in property prices in India reflects a dynamic market influenced by global and domestic factors. Understanding these trends provides insight into the evolving real estate landscape within the country.