Housing prices in India fell 1.7 per cent during the April-June quarter due to poor demand amid subdued economic conditions and there are no signs of recovery, real estate consultancy Knight Frank said.
Housing prices in India fell 0.1 per cent in the January- June period, while they rose 5.9 per cent during the 12 months ended June, according to the Knight Frank Global House Price Index, which tracks mainstream residential prices in 53 nations, including Dubai and Hong Kong.
The index reflects the weakening condition of the Indian residential market, Knight Frank India Chief Economist & Director-Research Samantak Das said.
"While disguised price discounts in the form of 80:20, rent back, waivers on floor rise, stamp duty and registration were the flavor for almost four-six quarters, with a decline of 1.7 per cent in the latest reported quarter, price deceleration is becoming more profound. We are yet to see any green shoots of recovery in the residential market," Das said.
Das attributed the fall in housing prices to buyers postponing purchases because of subdued economic conditions and low confidence in the market.
Over 69 per cent of the countries tracked by the index recorded positive price growth in the year to September. All but three of the 17 countries where house prices fell in the year to September were in Europe.
"Dubai, China and Hong Kong recorded the largest annual rise in mainstream prices, increasing by 28.5 per cent, 21.6 per cent and 16.1 per cent, respectively," it added. India ranks 19th, as per the latest country data.
The Knight Frank Global House Price Index rose by 4.6 per cent over the 12 months ended September. The index now stands 4 per cent above its previous peak in Q2 of 2008.
"Due to the dissipation of risks related to the global worries coming down, markets in the US, UK, Middle East, Dubai, China and Hong Kong have started rising.
"Comparatively, India is still affected by local factors of political and economic uncertainty. Only after these become clearer post-2014 will we see a resurgence in the Indian property market relative to the various other markets in the world," said Mudassir Zaidi, National Director - Residential Agency, Knight Frank India.