India at 14th spot in housing price rise in July-September with 5.9% growth: Report

Among the 56 markets monitored, 35 experienced annual price growth, while 21 witnessed price decline. "India climbed 18 spots to 14th rank in the global house price index in Q3 2023. The price increase of 5.9% year-on-year (YoY) in Q3 2023 (quarter ended September 2023)," the consultant said.

The remarkable growth in India's residential market, despite the challenges of higher home loan rates as well as threats of inflation, has largely been the result of stable economic growth which has lent itself to providing greater financial security to end-users, it noted.

"In light of an increased interest cost environment stemming from heightened inflation levels, the robust domestic economic fundamentals, and the escalating aspirational attributes of residential real estate, are driving heightened demand among homebuyers in prominent residential markets within the country," Knight Frank India chairman and managing director Shishir Baijal said.

Furthermore, he said the upsurge in urbanisation is providing additional momentum to infrastructure development, paving the way for emerging residential hubs in urban centres of India.

Hyderabad-based realty firm Poulomi Estates MD Prashant Rao said the housing demand and prices have improved post-COVID.

"Several factors contributed to the rise in property prices, including pent-up demand, a desire to upgrade, and a willingness to spend more for better and modern amenities. While property prices surged significantly across the country, Hyderabad consistently outpaced other metros year-on-year," Rao said.