India moved down 12 spots in the global home price index to the 55th rank in Q1 2021 against the 43rd rank in Q1 2020, with a decline of 1.6% YoY in home prices.
Globally, house prices are rising at their fastest rate since Q4 2006. Knight Frank’s Global House Price Index, a means of benchmarking average prices across 56 countries and territories, increased 7.3% in the year to March 2021.
Turkey leads the rankings for annual price growth for the fifth consecutive quarter, but strip out inflation and real prices are rising at around 16% per annum. Aside from Turkey, the top ten is largely comprised of developed nations, including New Zealand (22%), the US (13%), Sweden (13%), Austria (12%) and Canada (11%).
However, there are several large economies where strong price growth remains elusive and where sales have yet to gain traction – Italy (1.6%), India (-1.6%) and Spain (-1.8%) all recorded lower price growth in Q1 2021 than a year earlier either due to stringent lockdowns, economic concerns or excess supply.
India moved down 12 spots in the global home price index to the 55th rank in Q1 2021 against the 43rd rank in Q1 2020, with a decline of 1.6% year-on-year (YoY) in home prices, according to Global House Price Index – Q1 2021. 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% and 1.4%, respectively. The report highlighted that the United States witnessed the highest annual price growth rate since 2005, with a 13.2% increase YoY.
The Global House Price Index tracks the movement in mainstream residential prices across 56 countries and territories worldwide using official statistics.
KNIGHT FRANK GLOBAL HOUSE PRICE INDEX Q1 2021 – RANKED BY ANNUAL % CHANGE
Mainstream residential prices averaged across 56 countries and territories in Q1 2021 grew by 7.3%, which records 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.
Commenting on the same, 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.”