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Hyderabad only Indian city on top-20 list in home price rise: Report

Delhi, Bengaluru and Ahmedabad also recorded a jump in prices whereas Kolkata, Mumbai and Chennai saw a contraction.

Hyderabad came in at 14th spot on a list of 150 global cities, which saw an increase of 9 percent in residential prices year-on-year, according to a report by Knight Frank.

Hyderabad is the only Indian city to figure in top-20 in terms of appreciation in residential real estate prices.

Budapest in Hungary leads the Global Residential Cities Index Q3 2019 with the highest annual growth rate of 24 percent, followed by Xi'an in China and Wuhan in China at 15.9 percent and 14.9 percent, respectively.

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The Global Residential Cities Index by Knight Frank tracks the movement in mainstream residential prices across 150 cities worldwide.

Price growth has been strong in the Hyderabad residential market as shortfall in launches diverted homebuyers towards the ready unsold units, giving developers a bargaining edge.

Among other Indian cities which have seen an appreciation in home prices, New Delhi stood at the 73rd rank globally, with a home price appreciation of 3.2% YoY; Bengaluru at the 94th rank with a 2 percent appreciation and Ahmedabad at the 108th rank with a 1.1 percent rise, the report said.

Among the Indian cities which have seen degrowth in home prices, Kolkata was ranked at the 130th spot with a decline of 2 percent, Mumbai at 135th rank with a degrowth of 3 percent and Chennai at the 136th rank with a fall of 3 percent. Pune was the lowest-ranked Indian city standing at the 138th spot, registering a 3.5 percent decline in home prices.

Prices across the 150 cities worldwide increased at 3.2 percent on average, the weakest annual rate registered since the second quarter of 2015. Yet despite this, more than 78 percent of the 150 cities tracked by the index, registered either flat or rising prices over the 12-month period.

"During the last four years, the growth in residential prices in most of the top eight cities of India has been below retail inflation growth and the gap has progressively increased since H1 2016. Hyderabad has been the only market to buck the trend and record residential price growth over the retail inflation level. This end-user friendly movement in prices across cities is a step in the right direction and more in-line with the contemporary homebuyer's needs," said Shishir Baijal, Chairman & Managing Director, Knight Frank India.

Knight Frank Global Residential Cities Index Q3 2019
RankCityCountry/Territory

12-Month % Change

(Q3 2018-Q3 2019)
1BudapestHungary24.1%
2Xi’anChina15.9%
3WuhanChina14.9%
4ZagrebCroatia14.5%
5St. PetersburgRussia14.2%
6WarsawPoland13.1%
7AthensGreece11.8%
8LuxembourgLuxembourg11.4%
9LyonFrance11.2%
10BratislavaSlovakia10.2%
14HyderabadIndia9%
73DelhiIndia3.2%
94BengaluruIndia2%
108AhmedabadIndia1.1%
130KolkataIndia-2%
135MumbaiIndia-3%
136ChennaiIndia-3%
138PuneIndia-3.5%
 

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First Published on Jan 21, 2020 04:39 pm
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