India Ranks 54th Globally in Home Price Appreciation
India has moved up one spot up in the global home price index to 54th rank in the quarter ended June 2021 as against Q2 2020 due to continued resilience shown by the residential segment amidst the global outbreak of COVID-19 pandemic even as rates of residential properties fell marginally by 0.5 percent year-on-year during the quarter ended June, the global home price index by Knight Frank has said.
On a Q-o-Q comparative, India climbed up one spot in Q2 2021 as compared to Q1 2021, the report mentioned. The Global House Price Index report tracks the movement of mainstream residential prices across 55 countries and territories worldwide. The index tracks nominal prices in local currency.
The report mentioned that Turkey (29.2 percent) continues to lead the annual rankings, but its rate of growth is slowing down. Australia at 16.4 percent recorded its highest rate of annual price growth since 2003. A breakdown by developed and developing economies shows a more nuanced picture with developed markets outperforming by some margin.
Overall, 18 countries in Q2 2021 have reported double-digit growth, while India and Spain were the only countries to register an annual decline in home prices. However, this is the lowest proportion of markets registering a decline in prices since the Global House Price Index commenced in 2008.
Concerning 6-month (Q4 2020 – Q2 2021) and 3-month changes (Q1 2021 – Q2 2021), mainstream residential prices in India witnessed a growth of 0.9 percent and -0.5 percent, respectively.
“India’s mainstream residential prices have largely remained stable with negative bias despite recovery being impacted due to the second wave. Moving forward with the downward trajectory in COVID-19 cases and mass inoculation drive, the sector is expected to make a healthy recovery with demand for homes only expected to increase in the coming quarter,” said Shishir Baijal, chairman and managing director at Knight Frank India.
The report cited that the index is rising at its fastest rate since Q1 2005. The pandemic-induced housing boom continues with prices rising by 9.2 percent on average across 55 countries and territories in the year to June 2021.