India moves down 13 spots in Global House Price Index
Against its 43rd rank in Q4 2019, India saw a decline of 3.6 per cent year-on-year in home prices finishing last at 56th rank, according to Knight Frank report
Hyderabad: India has moved down 13 spots in the latest Global House Price Index finishing last at 56th rank in the quarter ending December 2020. Against its 43rd rank in Q4 2019, India saw a decline of 3.6 per cent year-on-year (YoY) in home prices, leading to the drop in global position.
Knight Frank’s Global House Price Index tracks the movement in mainstream residential prices across 56 countries and territories worldwide using official statistics. The report highlighted that 89 per cent of countries and territories saw prices increase in 2020, with several emerging markets performing strongly.
In the 12-month percentage change for the period Q4 2019 – Q4 2020, Turkey continues to lead the annual rankings with prices up by 30.3 per cent YoY, followed by New Zealand at 18.6 per cent YoY and Slovakia at 16 per cent YoY. India was the weakest-performing country in Q4 2020, with a decline of 3.6 per cent YoY in home prices, followed by Morocco with a drop of 3.3 per cent YoY.
The index shows mainstream residential prices across 56 countries and territories worldwide rose at an annual rate change of 5.6 per cent on average in 2020, compared to 5.3 per cent in 2019.
Indian markets have finished last on the table owing to conditions created by the pandemic. During 2020, the union and State governments have taken steps to incentivise spending and create demand such as low home loan rates, reduction in stamp duty and other levies on residential purchases in key markets.
Developers have added concessions to the government steps that have amounted to a further reduction in effective prices of homes. These steps have stimulated demand for housing in the latter part of 2020 but have kept prices at bay.
Shishir Baijal, CMD, Knight Frank India said, “Low-interest rates and other demand stimulation measures by the Government have fuelled real estate demand. This has led to sales and launches in Q4 2020 witness a significant jump compared to the first three quarters of 2020. The pandemic has effectively changed end users’ outlook towards ownership of homes leading many fence sitters to make their purchase decisions.”
Knight Frank said, as the vaccine roll out takes place, it expects normalcy to return, post which the government will device measures to extend the current sales momentum.
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