Delhi tops world in property price growth
In the past few years, Delhi, the capital of India, has observed the sharpest appreciation in property prices, reveals data available with the Global Property Guide, an organisation which collects data related to real estate from various nations across the world.
From the first quarter of 2011 to the first quarter of 2013, an appreciation of 60 percent has been recorded in terms of property prices in Delhi, followed by Sao Paulo (America), Hong Kong (China) compared to around 40 other cities belonging to different nations. Surprisingly, official data available on Indian cities reveals that Jaipur has even crossed Delhi in terms of residential realty growth with 67 percent hike in property prices.
Delhi’s 60 percent hike in real estate prices over this period is 17 percentage points greater than that of Sao Paulo in Brazil, the second fastest rising international realty market which has witnessed a 43 percent rise in property prices. Hong Kong, the third fastest rising market, witnessed a 33 percent hike in property prices for the same period. Following the 2000s property bubble, Dubai still appears to be in a recovery mode, as it saw a growth of 29 percent in its property prices in the last year while it had witnessed a marginal fall in prices between Q1 of 2011 and Q1 of 2012.
Around 12 of the 43 countries appear to have recorded a double-digit growth in real estate prices in the last two years. Most of these are emerging economies which include- Turkey, Estonia, Philippines, Norway, Iceland, Indonesia, New Zealand and South Africa.
The US realty market, which had recorded a fall during 2011-2012 period, observed an appreciation of around 9% during 2012-2013. On similar lines, Beijing too observed a drop in the 2011-12 year while it registered 8% growth during 2012 to 2013 after dropping in the previous year.
The real estate markets of Germany and Japan also witnessed appreciation in prices by 8% and 3% respectively. While in Germany, the rates depreciated by 2% in Q1 2011 to Q1 2012, while it had grown by 9.8 % during 2011-2012.
Many other large economies witnessed a sluggishness in the real estate sector. While France, UK and Russia observed still real estate prices in the Q1-2011 to Q1-2013 period, most other European countries are observing a sharp downfall.
More than 10 percent decline in property prices has been recorded in Croatia, Netherlands and the PIGS countries (Portugal, Spain, Italy and Greece – Southern Europe’s most troubled economies). A 15 percent downtrend has been recorded in Spain and Portugal, Greece observed 21 percent fall, while Italy had no data to be analysed.
Surprisingly, almost all the Indian cities witnessed an increasing trend in terms of property prices. Only Hyderabad and Kochi saw a downfall in property prices, as per the RESIDEX, the National Housing Bank’s property price index.
As compared to Delhi’s growth, cities such as Faridabad, Pune, Kochi, Bhopal, Mumbai and Chennai have witnessed increased growth in property prices. In the last six years between 2007 to 2013, the property prices have grown by more than 200% in Delhi, Faridabad, Mumbai, Pune, Kochi and Bhopal while they have grown by 300% in Chennai.
This study by the Global Property Guide, gives a positive hope to the entire real estate market growth of India. It is likely that the property prices are expected to increase further in the near future.
