India has witnessed the sharpest appreciation in real estate prices in the last couple of years, according to data from the Global Property Guide, an organization which collates real estate data from across the world.
Property prices in Delhi witnessed the steepest appreciation of roughly 60%, when compared to cities from 43 other countries. While the study has information only for Delhi in India, official data suggests that Jaipur has seen an even faster rise in property prices of 67% over this period.
RESIDEX, the National Housing Bank's property price index which is also the source of Global Property Guide's Indian data, shows that except Hyderabad and Kochi, the property market has appreciated across the country since 2007. Prices have doubled in Faridabad, Pune, Bhopal and Mumbai and trebled in Chennai.
Pankaj Kapoor of real estate research firm Liases Foras, said, "The weighted average price in the Mumbai Metropolitan Region was Rs 5,600 a sq ft in 2009. This shot up to Rs 11,700 psf in 2013. In Mumbai, it was Rs 15,000 a sq ft in 2010, while in 2013 it is around Rs 18,000-19,000 psf." US realty rates up as economy recovers T he Global Property Guide study shows that Delhi's 60% rise in real estate prices over the past two years is nearly 20 percentage points higher than Brazil's Sao Paulo, which is the second fastest rising international property market. From the first quarter of 2011 to Q1-2013, Sao Paulo, the largest city in the Americas in terms of population, witnessed a 43% increase in real estate prices.
Hong Kong, the third fastest rising market for the same period, saw its property prices going up by 33%. Dubai also appears to be in a recovery phase after the bust of its early 2000s property bubble. The city witnessed a 29% increase in its real estate prices in the last year. The West Asian city had witnessed a marginal decline in prices between Q1-2011 and Q1-2012.
In the past two years only 12 of the 43 countries saw double-digit growth in property prices. Most of these are emerging economies, not surprising given the fact that Europe has been battling the century's worst recession. Other countries where property prices went up by more than 10% are Turkey, Estonia, Philippines, Norway, Iceland, Indonesia, South Africa and New Zealand.
The data indicates that property prices in America, the world's largest real estate market, are increasing as its economy recovers. The US real estate market saw prices appreciating by 9% between Q1-2012 and Q1-2013 after declining over the previous year. Similarly, Beijing's property prices too registered 8% growth during Q1-2012 to Q1-2013 after dropping in the previous year.
Other large economies which have witnessed a positive growth in property prices are Germany and Japan, where real estate prices increased by 8% and 3% respectively. However, in Germany property prices fell by almost 2% over the last year after increasing by 9.8% between Q-1 2011 and Q1-2012. The property market remains sluggish in other large economies.  |
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