UPDATED: June 10, 2021 19:31 IST
India has moved down 12 spots in the global home price index to 55th position in Q1 2021 against 43rd rank in the same period late year, according to the latest report released by leading international property consultancy Knight Frank. On a year-on-year basis, there has been a 1.6 per cent decline in home prices.
However, India has gained a spot in comparison to last quarter (Q4FY20) when the country ranked last globally amongst 56 countries tracked by Knight Frank’s Global House Price Index.
With respect to 6-month (Q3 2020 Q1 2021) and 3-month (Q4 2020 — Q1 2021) changes, residential prices in India witnessed a growth of 0.6 per cent and 1.4 per cent, respectively.
The report further highlighted the average y-o-y price changes across Indian markets. Kolkata prices went down by 4 per cent, Pune by 3 per cent, Mumbai by 3 per cent, Ahmedabad by 2 per cent, Bengaluru by 1 per cent. In contrast, NCR property prices went up by 1 per cent.
It may be noted that India was ranked 54th in Q2 of 2020, 54th in Q3FY2020 and 56th in
The report highlighted that the United States witnessed the highest annual price growth rate since 2005, with a 13.2 per cent increase on a year-on-year basis.
The Global House Price Index tracks the movement in mainstream residential prices across 56 countries and territories worldwide using official statistics.
In the 12-month percentage change for Q1 2020 Q1 2021, Turkey continued to lead the annual rankings with prices up by 32 per cent, followed by New Zealand at 22.1 per cent and Luxembourg with 16.6 per cent. Spain was the weakest-performing territory in Q1 2021, where home prices fell by 1.8 per cent, followed by India with -1.6 per cent.
Meanwhile, mainstream residential prices averaged across 56 countries and territories in Q1 2021 grew by 7.3 per cent, which records the fastest growth in prices since Q4 2006.
According to the report, 7 per cent (4 countries) of the surveyed global countries and territories registered a decline in yearly price growth, while 13 of the 56 countries and territories experienced a yo-y double-digit growth in prices till Q1 2021.
Shishir Baijal, Chairman & Managing Director, Knight Frank India said, “In Q1 2021, India witnessed meaningful recovery in sales volumes, helping housing prices remain stable. In the preceding quarters, the residential markets had been on a path of rebound with markets such as Mumbai and Pune achieve pre-covid levels of activities. However, with the onset of the second wave and the threat of new variants of the virus along with the fluctuation in vaccine roll out there could be a pressure on sales volumes as well as on price growth.”