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Home prices in India grew 1.4% sequentially in March quarter: Knight Frank

With the onset of the second wave, the threat of new variants, and a slow pace of vaccination there could pressure on sales volumes as well as on price growth. (Photo: Mint)Premium
With the onset of the second wave, the threat of new variants, and a slow pace of vaccination there could pressure on sales volumes as well as on price growth. (Photo: Mint)

  • Between Q1 2020 and Q1 2021, Turkey has continued to lead the annual rankings with prices up 32% year-on-year, followed by New Zealand at 22.1% and Luxembourg with 16.6%. Spain was the weakest-performing territory in Q1 2021, where home prices fell 1.8% YoY, followed by India with -1.6%

BENGALURU: India moved down twelve spots in the global home price index to rank 55 in the March quarter compared with 43rd rank in the year-ago period, with a 1.6% year-on-year (YoY) decline in home prices, according to property advisory Knight Frank’s in its latest research report - Global House Price Index - Q1 2021.

However, compared with the December quarter, when India was at the last spot among the 56 countries tracked by the Index, it has gained a spot in the March quarter. Since the July-September quarter 2020 and October-December 2020, residential prices in the March quarter witnessed a growth of 0.6% and 1.4%, respectively.

The Global House Price Index tracks movement in mainstream residential prices across 56 countries and territories worldwide using official statistics. Between Q1 2020 and Q1 2021, Turkey has continued to lead the annual rankings with prices up 32% year-on-year, followed by New Zealand at 22.1% and Luxembourg with 16.6%. Spain was the weakest-performing territory in Q1 2021, where home prices fell 1.8% YoY, followed by India with -1.6%.

The report highlighted that the US witnessed the highest annual price growth rate since 2005, with a 13.2% increase YoY.

Average mainstream residential prices across 56 countries and territories in Q1 2021 grew 7.3%, which is the fastest growth in prices since Q4 2006. According to the report, 7% (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," saidShishir Baijal, chairman and managing director, Knight Frank India.

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