Hyderabad records highest residential price appreciation among Indian cities, Chennai ranks 2nd: Report

The Turkish city of Izmir leads the annual rankings this quarter with price growth of 34.8%.

Knight Frank’s Global Residential Cities Index has featured four Indian cities, i.e. Hyderabad, Chennai, Kolkata and Ahmedabad, to have witnessed residential price appreciation in Q3 2021.

Residential prices across 150 cities worldwide increased at an annual average of 10.6% YoY in Q3 2021, recording as the fastest residential price growth rate since Q1 2005, according to a Knight Frank report.

The report – Global Residential Cities Index Q3 2021 – highlights that of the 150 cities tracked, 93% saw prices increase over the 12-month period and 44% saw prices increase by more than 10%. 44% of cities registered double-digit price growth in the year to Q3 2021.

The Turkish city of Izmir leads the annual rankings this quarter with price growth of 34.8%. New Zealand, US, Australian and Canadian cities rank strongly with Wellington (33.5%), Phoenix (33.1%), Halifax (31.7%) and Hobart (30.9%) their respective frontrunners. Despite the bullish performance of the index overall, 51 cities saw their rate of annual price growth decline between June and September. Moscow, Tel Aviv and Perth were amongst some of the biggest fallers.

Knight Frank’s Global Residential Cities Index has featured four Indian cities, i.e. Hyderabad, Chennai, Kolkata and Ahmedabad, to have witnessed residential price appreciation in Q3 2021.

Hyderabad was positioned at 128th rank on Global Residential Cities Index with 2.5% year-on-year (YoY) rise in home prices. On domestic level, Hyderabad recorded the highest residential price appreciation amongst the Indian cities. Chennai ranked 2nd amongst the Indian cities and 131st globally with residential price appreciation of 2.2%. Kolkata ranked 135th and Ahmedabad at 139th on the global index with a price appreciation of 1.5% and 0.4%, respectively, in the residential asset class. Mumbai was the lowest-ranked Indian city with a global ranking of 146th on the index, registering a decline of 1.8% in home prices.

TOP 8 INDIAN CITIES: ANNUAL RANKING AND PRICE CHANGE

Among the other Indian cities that have seen marginal de-growth in home prices were Bengaluru ranked at the 140th spot with a decline of 0.2% YoY, followed by Delhi at 142nd rank with a decline of 0.7% YoY, while Pune ranked 144th with a fall of 1.5% YoY.

Commenting on the same, Shishir Baijal, Chairman & Managing Director, Knight Frank India, said, “India has seen a strong demand revival being supported by government stimulants, increased household savings, as well as low interest rates. Pricing has played a key role in pushing up home sales, as they had, for most part of the last 6 quarters remained attractive. As demand trends developed, residential values firmed up in many markets, and are now expected to remain between stable to increasing. However, developments in the pricing dynamics will depend on the future demand.”

“Factors like interest rates, impact of Omicron and inflationary pressures, amongst others, will determine buyer sentiments. We hope that the government will continue to maintain its accommodative and positive status in maintaining the current economic environment to help maintain the sales momentum in the residential segment,” he added.

The Global Residential Cities Index tracks the movement in mainstream residential prices across 150 cities worldwide using official statistics.

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