India reported a decline of 2.4 per centyear-on-year (YoY) in home prices
Global Home Price Index: India slipped seven spots lower, touching the 54th rank, in the global home price index in the third quarter (Q3) of this financial year, against its 47th rank in the same quarter last year. According to a recent research report 'Global House Price Index Q3 2020' released by Knight Frank, the country reported a decline of 2.4 per cent year-on-year (YoY) in home prices. The country's performance as compared to the previous quarter of Q2 in 2020, remains unchanged at the 54th rank amongst all of the 56 countries and territories tracked in Q3 of this financial year's index.
The report analyses the country's residential and office market performances across eight major cities for the third-quarter period. It estimates that the home sales volume jumped by 2.5 times to 33,403 units in Q3 as compared to 9,632 in Q2 of this financial year. The new residential unit launches increased by 4.5 times to 31,106 units in the third quarter, as compared to 5,584 units in the previous quarter.
The Global House Price Index tracks the movement in the mainstream residential prices across 56 countries and territories worldwide using official statistics. According to the report, in the 12-month percentage change for the period Q3 2019-Q3 2020, Turkey continues to lead the annual rankings with prices up by 27.3 per cent YoY, followed by New Zealand at 15.4 per cent YoY, and Luxembourg with 13.4 per cent YoY. Morocco was the weakest performing territory in the third quarter of 2020, with home prices fallen to 3.3 per cent YoY. The report highlighted that in Q3 this year, India, Spain, Ireland, and Hong Kong recorded the weakest price growth year-on-year.
The mainstream residential prices across 56 countries and territories worldwide witnessed a slight price correction, which stood at an annual rate change of 4.5 per cent on average, as compared to the second quarter of 2020 at 4.7 per cent. According to the report, 16 per cent of the surveyed global countries and territories recorded a decline in the yearly price growth. In the second quarter of this financial year, several housing markets remained frozen and saw a sharp rebound in sales and prices in the third quarter including US, New Zealand, and the UK, while others registered only a marginal impact on pricing including France, China, and Germany.
"In order to combat the adverse economic implications of the pandemic, real estate developers started innovating their marketing strategies which included financial benefits, discount, and easy payment options to attract buyers. While the overall real estate sector dynamics continue to remain strained, there has been a meaningful improvement in sales in Q3 2020,'' said Shishir Baijal, Chairman & Managing Director, Knight Frank India said.
''Home loan rates at a multi-decade low of sub 7 per cent, fall in residential prices, aggressive marketing of ready inventory, and indirect discounts to the buyers - have helped move the demand needle in Q3 2020. Going forward, though the economic fundamentals continue to remain strong, economic recovery is faster than expected. The housing trend remains strong and is expected to continue in the first quarter of 2021,'' he added.
