India Ranks 3rd in the World in Highest Realty Prices

Bangalore: Among 53 countries, India stood at 3^rd position in real estate price escalation. Property prices in India rose to 12 percent, which is the highest recorded in Indian realty market in the previous year, according to the global house price index survey conducted by Knight Frank, a property consultant.  

However, the housing prices in India slowed down by 0.9 percent when compared with the previous quarter.

The survey shows that Brazil recorded the strongest annual growth of 23.5 per cent in the last year, followed by Estonia with 13.9 percent growth rate and Ireland recorded the weakest annual growth of minus 16.3 percent.  

This survey examines and evaluates the performance of 53 mainstream residential markets across the globe.

According to Samantak Das, National Head (research) of Knight Frank, in each city, property prices are driven by some inherent factors.  He further stated that "Base prices in tier-2 cities like Bhopal and Guwahati are affordable compared to big cities like Mumbai, which are reeling under price pressure. The price difference in turn reflects on flat sales across various cities across the country.''  

Interestingly, the real estate market outlook in some countries looks healthy, whereas, the picture is not the same globally. According to the report, "Global property prices have seen their weakest annual performance since depths of recession in 2009, recording 0.9% growth in the year ending March 2012. Doubts over Eurozone's future, along Asian governments' efforts to cool their markets and deter speculative investment, have taken their toll and house prices were static in the first three months of 2012.''

Moreover, Austria stood at 4^th position with 11 percent price rise, followed by Germany with 9.8 percent, Colombia 9.6 percent, Turkey 8.7 percent, Russia 8.2 percent, Iceland 7.3 percent and Canada with 6.8 percent.