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Spurred by the government’s Housing for All scheme, small towns Ranchi, Bhubaneshwar, Coimbatore, Nashik and Kanpur topped the chart for cities in which property prices rose the most in in the last quarter of 2017, the Knight Frank Global House Price index shows.
The cities recorded price increases of 16 percent, 14 percent, 13 percent, 13 percent and 12 percent, respectively.
On average, property prices in India rose a mere 3.3 percent during the same period, pulled lower by a fall in cities such as xx, yy and zz.
The Global House Price Index for Q1 2018 tracks the movement in residential prices across 57 markets using data from official sources such as central banks and national statistics offices. The data for India property prices is from the October-December quarter.
The index allows investors and developers to compare the performance of residential markets around the world. Compiled on a quarterly basis, the index’s overall performance is weighted by a country’s gross domestic product (GDP) on a purchasing power parity basis.
“The housing market of the country represents a mixed bag as per our Global House Price Index Q1 2018 findings. While the major metros continue to languish in the price growth dimension, it is the tier 2 and 3 cities like Ranchi, Bhubaneshwar, Coimbatore, Nashik and Kanpur which are leading the price gains in 2017,” said Samantak Das, Chief Economist and National Director - Research, Knight Frank India.
“The movement of ‘Housing for All’ that now finds public and private participation alike has gathered steam in the smaller towns of the country. To endure this momentum in the near future, we hope there is a sustainable recovery in housing demand.”
Hong Kong topped the index among global markets, with residential property prices increasing 14.9 percent in the first quarter. The city-state has held the top spot on ten different occasions – more than any other territory tracked. It, however, topped for the first time since Q2 2015.
On average, property prices globally rose 4.8 percent during the quarter. House prices rose in 49 out of the 57 markets tracked, but only five witnessed price gains of more than 10 percent.
Analysis by world region shows Asia Pacific (average price gain of 5.7 percent) came in second after North America (6.6 percent).
Europe’s recovery is now well underway, with 11 of the 15 strongest-performing housing markets globally being from the region at the end of March 2018.
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