Home prices across the 150 cities worldwide increased by 5.6% on an average in 2020, up from 3.2% in 2019, according to Knight Frank’s latest report ‘Global Residential Cities Index Q4 2020’. However, the performance of urban house prices is becoming increasingly polarised. The gap between the strongest and weakest-performing city is now 42 percentage points, up from 36 in June 2020.
The report highlights that 81% of cities saw prices increase in the year to Q4 2020, while the index’s annual rate of growth increased for the sixth consecutive quarter in Q4 2020. 20% of cities registered double-digit price growth in the year to Q4 2020.
Hyderabad was the only Indian city globally to witness residential price appreciation in Q4 2020, positioning at 122nd rank with a marginal 0.2% year-on-year (YoY) rise in home prices. In terms of the de-growth of residential prices, Chennai was the lowest-ranked Indian city standing at the 150th spot, registering a 9.0% decline in home prices.
In Q4 2020, residential sales in Hyderabad jumped by 127% QoQ to 3,651 units as compared to 1,609 units in Q3 2020. This can be attributed mainly to festive season promotions and the COVID-induced push for newer homes with a better layout, thereby accommodating the new work requirements from home.
THE KNIGHT FRANK GLOBAL RESIDENTIAL CITIES INDEX Q4 2020
RANKED BY ANNUAL % CHANGE
Among the other Indian cities that have seen de-growth in home prices below 5%, Bengaluru was ranked at the 129th spot with a decline of 0.8% YoY, followed by Ahmedabad at the 143rd rank with a decline of 3.1% YoY, Mumbai ranked 144th with a fall of 3.2% YoY, and Delhi was ranked at the 146th spot with a decline of 3.9% YoY in prices. Kolkata witnessed a decline of 4.3% YoY, standing at the 147th spot. Some of the Indian cities which have seen de-growth of above 5% were Pune (148th rank) and Chennai (150th rank) with 5.3% YoY and 9.0% YoY decline, respectively, in Q4 2020.
The Global Residential Cities Index tracks the movement in mainstream residential prices across 150 cities worldwide using official statistics. Ankara in Turkey leads the Global Residential Cities Index Q4 2020 with the highest growth rate of 30.2%, followed by Izmir in Turkey and Istanbul in Turkey at 29.4% and 27.9%, respectively.
Commenting on the same, Shishir Baijal, Chairman & Managing Director, Knight Frank India, said, “The performance of Hyderabad’s residential market has remained consistent all through the pandemic, with the city’s real estate market maintaining annual price growth in each quarter, all through 2020. This performance can largely be attributed to the city being a preferred destination by professionals from IT/ITeS companies. The Indian residential market has strongly rebounded over the last three quarters with the pandemic experience on owning houses, lower prices and multi-decade low home loan interest rate. The government interventions on stamp duty cut in key markets also helped the sector gain momentum back to the pre-Covid levels.”