India's 21.3% surge makes it world's second-fastest growing housing market

India now has the second-fastest growing residential property prices in the world. Knight Frank’s latest global housing price index shows that during year to Q1 2011, house prices in India surged by 21.3%.

The international agent monitors 50 key housing markets around the world and the new index ranks India as the second most successful housing market.

Local statistics agree. According to the National Housing Bank, prices were up by 22.64% in New Delhi in the second quarter of 2011 as low interest rates, urbanisation and a booming economy al combine to drive the economy into fast-forward.

The Indian government has recently increased interest rates in an attempt to stabilise the price boom and economists argue that rising inflation will also slow the growth curve.

Source: OPP.org.uk