India has slipped down 13 spots in the latest global home price index, finishing last at 56th rank in the quarter ended December 2020, according to a Knight Frank report. Overall India saw a decline of 3.6 per cent in home prices year-on-year leading to the drop in global position. It was ranked 43 on the Global House Price Index in the fourth quarter of 2019.
According to the report, about 89 per cent of countries and territories saw increase in prices last year.
India finished last on the table owing to conditions created by the pandemic. Last year, the union and state governments took steps such as historic low home loan rates, reduction in stamp duty and other levies on residential purchases in key markets to stimulate spending and create demand. These steps have stimulated demand for housing in the latter part of 2020 but have kept prices at bay.
“Low-interest rates and other demand stimulation measures by the government have fuelled real estate demand. This has led to sales and launches in Q4 2020 witnessed a significant jump compared to the first three quarters of 2020. The pandemic has effectively changed end users’ outlook towards ownership of homes leading many fence sitters to make their purchase decisions,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India.
“As the vaccine roll out takes place, we expect normality to return, post which the government will have device measures to extend the current sales momentum,” he added.
The Global House Price Index tracks the movement in mainstream residential prices across 56 countries and territories worldwide using official statistics.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU