India has moved down seven spots in terms of real estate prices to 54th rank against 47th in Q3 2019 in the Knight Frank’s Global House Price Index Q3 2020, a 2.4% year-on-year (YoY) decline in home prices.
However, as per the performance of India compared with Q2 2020, the ranking has remained unchanged to 54 amongst the 56 countries and territories tracked in Q3 2020 index.
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 falling 3.3% YoY.
As per the report Ireland, Spain, India and Hong Kong witnessed the weakest price growth year-on-year.
Shishir Baijal, CMD, 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,” he said.
“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.
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, U.K. and the U.S., while others witnessed only a marginal impact on pricing including China, France and Germany.
