Hyderabad ranks 14th globally in housing price appreciation

Hyderabad ranked 14th out of 150 cities globally in terms of price appreciation in residential properties, with the southern Indian city witnessing a 9 percent increase in rates during the July-September period last year, according to property consultant Knight Frank. Budapest in Hungary leads the 'Global Residential Cities Index Q3 2019' with the highest annual growth rate of 24 percent, followed by Xi'an and Wuhan in China at 15.9 percent and 14.9 percent, respectively.

Knight Frank said that Hyderabad is the only Indian city to figure in the top 20 list in terms of appreciation in residential real estate prices. Among other Indian cities, Delhi ranked 73th with 3.2 percent growth in housing prices year-on-year, followed by Bengaluru at 94th position that saw a 2 percent rise in home rates.

Ahmedabad ranked 108th with a 1.1 percent rise in housing prices, while Kolkata stood at 130th position, recording a 2 percent decline in rates. Mumbai and Chennai ranked 135 and 136, respectively, with 3 percent fall in housing prices in both the cities. Chennai is in the 138th position with a 3.5 percent decline in rates.

Price growth has been strong in the Hyderabad residential market as a shortfall in launches diverted homebuyers towards the ready unsold units, giving developers a bargaining edge, Knight Frank said in the report. "During the last four years, the growth in residential prices in most of the top eight cities of India has been below retail inflation growth and the gap has progressively increased since H1 2016.

"Hyderabad has been the only market to buck the trend and record residential price growth over the retail inflation level. This end-user friendly movement in prices across cities is a step in the right direction and more in-line with the contemporary home buyer's needs," said Shishir Baijal, Chairman & Managing Director, Knight Frank India. Global Residential Cities Index tracks the movement in mainstream residential prices across 150 cities worldwide using official statistics.

Prices across the 150 cities worldwide increased at 3.2 percent on average, the weakest annual rate registered since the second quarter of 2015. More than 78 percent of the 150 cities tracked by the index, registered either flat or rising prices over the 12-month period.