India records 12% growth rate in the Residential Market; ranks third in the Global House Price Index
By Knight Frank
The Knight Frank Global House Price Index established in 2006 is the definitive means for investors and developers to monitor and compare the performance of mainstream residential markets across the world. The index is compiled on a quarterly basis using official government statistics or central bank data where available.
The Global House Price Index recorded its weakest annual performance since the depths of the recession in 2009, recording only 0.9% growth in the year to March 2012.
- Prices remained flat in the first three months of 2012 (0% growth)
- Brazil recorded the strongest annual growth (23.5%), followed by Estonia with a growth rate of 13.9%, followed by India with a growth rate of 12% in the last one year
- On a regional basis house prices are falling fastest in Africa (-0.8%). Growth in Asia Pacific has slowed to 2.1%
- During the first quarter of 2012, house prices fell in 58% of the countries monitored by the index
- Doubts over the Euro zone's future, along with the Asian governments' staunch efforts to cool their markets and deter speculative investment, have taken their toll.
- The Chinese housing market has had a tough 12 months as developers and purchasers alike have had bank finance squeezed as a consequence of the ongoing cooling measures. Lending restrictions, new taxes, the curbing of multiple property purchases, and new regulations to restrict the inward flow of hot foreign money have had the desired effect.
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