India slips to 54th YoY globally in home price appreciation; Turkey continues to lead Q3 2020 index: Knight Frank
Knight Frank, a leading international property consultancy, in its latest research report - Global House Price Index Q3 2020 cited that India moves down 7 spots in the global home price index to 54th rank in Q3 2020 against 47th rank in Q3 2019, with a decline of 2.4% year-on-year (YoY) in home prices. The performance of India compared to previous quarter Q2 2020, the ranking remains unchanged to 54thspot amongst the 56 countries and territories tracked in Q3 2020 index.
The Global House Price Index tracks the movement in mainstream residential prices across 56 countries and territories worldwide using official statistics. 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% YoY, followed by New Zealand at 15.4% YoY and Luxembourg with 13.4% YoY. Morocco was the weakest-performing territory in Q3 2020, with home prices fallen to 3.3% YoY.
Global Home Price Ranking - Matrix
Source:Knight Frank Research
The report highlighted in Q3 2020, Ireland, Spain, India and Hong Kong witnessed the weakest price growth year-on-year.
According to the Knight Frank India’s recent report titled India Real Estate Update (July – September 2020) - analyses the residential and office market performances across eight major cities for the Q3 2020 period. It estimates that home sales volume jumped by 2.5 times to 33,403 units in Q3 2020 compared to 9,632 in Q2 2020. New residential unit launches increased by 4.5 times to 31,106 units in Q3 2020, compared to 5,584 units in the previous quarter.
Knight Frank Prime Global House Price Index Q3 2020
Ranked by annual % change
Country
Ranking -Q3 2019
Ranking -Q1 2020
Ranking -Q2 2020
Ranking -Q3 2020
India
47
43
54
54
Source: Knight Frank Research
Mainstream residential prices across 56 countries and territories worldwide saw a slight price correction, which stood at an annual rate change of 4.5% on average, compared to Q2 2020 at 4.7%. According to the report, 16% of the surveyed global countries and territories registered a decline in yearly price growth. In Q2 2020, many housing markets remained frozen and saw a sharp rebound in sales and prices in Q3 2020 including New Zealand, UK and the US, while others witnessed only a marginal impact on pricing including China, France and Germany.
Shishir Baijal, Chairman & Managing Director, Knight Frank India said, “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. Home loan rates at a multi-decade low of sub 7%, 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.”
Key Findings of Global House Price Index Q3 2020:
Rank
Country/Territory
12-Month % Change
(Q3 2019-Q3 2020)
6-Month % Change
(Q1 2020-Q3 2020)
3-Month % Change
(Q2 2020-Q3 2020)
1
Turkey
27.3%
17.0%
5.2%
2
New Zealand
15.4%
3.6%
8.2%
3
Luxembourg
13.4%
8.5%
4.3%
4
Slovakia
11.8%
7.2%
3.5%
5
Poland
10.9%
5.7%
2.0%
6
Ukraine
10.3%
1.8%
1.8%
7
Austria
9.5%
6.8%
3.6%
8
Russia
9.2%
4.7%
3.3%
9
Netherlands
8.5%
4.7%
2.8%
10
Croatia
8.3%
4.5%
1.8%
54
India
-2.4%
-2.4%
-0.5%
56
Morocco
-3.3%
-4.3%
-3.4%
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