India climbs 5 spots to 51st position globally in annual home price movement: Knight Frank

FPJ Web DeskUpdated: Tuesday, March 22, 2022, 11:55 AM IST
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The price increase of 2.1 percent YoY in the fourth quarter, makes it the best quarter in the year 2021./Representative image | FPJ

Knight Frank, International Property Consultancy, in its latest research report - Global House Price Index – Q4 2021 cited that India climbed up 5 spots in the global home price index to 51st rank in Q4 2021 against 56th rank in Q4 2020. The price increase of 2.1 percent YoY in the fourth quarter, makes it the best quarter in the year 2021.

Key findings

· India ranked 51st globally in home price appreciation for Q4 2021

· India witnessed a rise in nominal price growth of 2.1% in house price in Q4 2021

· Turkey led the index with the highest annual price growth rate by 59.6% in the year to Q4 2021 in nominal terms

· Australia recorded the highest rate of annual price growth in the year by 17.5% to Q4 2021 in real terms.

· Globally, house prices increased by 10.3% on average in 2021

· Only three markets saw prices decline in 2021 – Malaysia, Malta and Morocco

With respect to quarterly changes, Q1 2021 and Q2 2021 witnessed a decline of 1.6 percent and 0.5 percent respectively. The Q3 and Q4 2021 have been positive towards the residential price change, witnessing a growth of 0.1 percent and 2.1 percent respectively.

The Global House Price Index tracks the movement in mainstream residential prices across 56 countries and territories worldwide using official statistics. The index tracks nominal and real price growth in local currencies.

The rankings on the price movement have been accounted basis the nominal price growth change. The average annual price change across 56 countries and territories was recorded at 10.3 percent. Turkey witnessed the highest annual price growth rate by 59.6 percent in the year to Q4 2021 to nominal terms, whereas Malaysia, Malta and Morocco markets recorded a decline in prices by 0.7 percent, 3.1 percent and 6.3 percent respectively in the year 2021.

According to the report, the ten markets that have witnessed the strongest increase in house prices since the start of the pandemic are largely developed markets where governments stepped in to support economies, and in some cases, housing markets via mortgage holidays or subsidy programmes

Shishir Baijal, Chairman & Managing Director, Knight Frank India said, “Influenced positively by the pandemic, the recovery in house price is a global phenomenon, which was supported by government policy measures and cost inflation in many overseas markets. In case of India nominal prices have registered a marginal growth, bucking the negative trend experienced in previous quarters, indicating a similar trend of growth in demand. With renewed enthusiasm of consumers towards home ownership, competitive house prices and low home loan interest rate, we expect the market momentum to continue.”

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