India has moved down 12 spots in the global home price index to 55th rank in Q1 2021 against 43rd rank in Q1 2020, with a decline of 1.6 percent year-on-year (YoY) in home prices, Knight Frank, an international property consultancy, in its latest research report - Global House Price Index - Q1 2021, has said.
India gained a spot, compared to last quarter (Q4 2020), where India ranked last globally amongst the 56 countries tracked by the 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 percent and 1.4 percent, respectively. The report highlighted that the United States witnessed the highest annual price growth rate since 2005, with a 13.2 percent increase YoY.
The average price changes YoY across Indian markets had Kolkata prices going down by 4 percent, Pune by 3 percent, Mumbai by 3 percent, Ahmedabad by 2 percent, Bengaluru by 1 percent and NCR went up by 1 percent.
India was ranked 54th in Q2 of 2020, 54th in Q3 2020, and 56th in Q4 2020, it said.
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 continues to lead the annual rankings with prices up by 32 percent YoY, followed by New Zealand at 22.1 percent YoY and Luxembourg with 16.6 percent YoY. Spain was the weakest-performing territory in Q1 2021, where home prices fell by 1.8 percent YoY, followed by India with -1.6 percent.
Mainstream residential prices averaged across 56 countries and territories in Q1 2021 grew by 7.3 percent, which records the fastest growth in prices since Q4 2006. According to the report, 7 percent (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 YoY double-digit growth in prices till Q1 2021.
“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,”said Shishir Baijal, chairman and managing director, Knight Frank India.
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