A tier-two Indian city is currently the world’s fastest-growing housing market

The city of Surat in western India posted a 22.3 percent growth in average residential prices in the year to March, according to Knight Frank’s latest Global Residential Cities Index.

This is the fastest clip recorded by any city on the index that tracks 150 markets worldwide. Home to 4.5 million people, the tier-II city in Gujarat state is the only market on the index to register growth faster than 20 percent per annum.

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For perspective, 12 cities exceeded that mark in the first quarter of 2017.

“Located on India’s west coast, the city has recorded a spike in price growth due to an inordinately low base in Q1 2017, caused by the unprecedented demonetisation of high value currency in the country,” explained Kate Everett-Allen, partner with Knight Frank’s international residential research division.

The closest growth rates to Surat were those of Izmir in Turkey and Hong Kong at 16.5 percent and 15.6 percent, respectively.

India recorded the largest variation between strongest and weakest performing cities among countries featured on the index. Ranking 143 on the index with annual home price decline of 5 percent, Delhi is separated from Surat by 27 percentage points.

Ref : Property Report