India finishes last on global home price index
Niti Kiran March 18, 2021
India has moved down 13 spots in Knight Frank's latest global home price index to finish last at 56th rank in the quarter ending December 2020. The country saw a decline of 3.6 per cent year-on-year (YoY) in home prices against its 43rd rank in Q4 2019, leading to the drop in global position.
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 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 and Slovakia at 16.0 per cent. India was the weakest-performing country in Q4 2020, with a decline of 3.6 per cent in home prices, followed by Morocco with a drop of 3.3 per cent YoY.
The report highlighted that 89 per cent of countries and territories saw prices increase in 2020, with several emerging markets performing strongly, including Turkey, which leads the index for the fourth consecutive quarter.
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. "Markets like New Zealand (19 per cent), Russia (14 per cent), the US (10 per cent), Canada and UK (both 9 per cent) have recorded accelerated growth in rankings in the last three months due to a growth in housing demand. In the context of Asia Pacific, the performance remains surprisingly anaemic given its relatively efficient handling of the pandemic," it said.
Indian markets have finished last on the table owing to conditions created by the pandemic. During 2020, the union and state governments have taken many steps to incentivse spending and create demand. Steps included historic 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, it added.