NEW DELHI: India has climbed up five spots in the global home price index to the 51st rank in the fourth quarter of 2021 against 56th rank in Q4 2020.
The price increase of 2.1% YoY in the fourth quarter makes it the best quarter in the year 2021, according to Knight Frank. 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.
Turkey led the index with the highest annual price growth rate by 59.6% in the year to Q4 2021 in nominal terms while 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– Malaysia, Malta and Morocco- recorded a decline in prices by 0.7%, 3.1% and 6.3% respectively, in 2021.
With respect to quarterly changes, home prices in India declined in the first and second quarter of 2021 by 1.6% and 0.5%, respectively. The Q3 and Q4 2021 have been positive towards the residential price change, witnessing a growth of 0.1% and 2.1%, respectively.
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.
“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," said Shishir Baijal, Chairman & Managing Director, Knight Frank India.
“Indian real estate has been on a path of consistent growth since the pandemic. In the past one year, the residential demand is rising manifold in India. The Global Price Index is showcasing an optimistic future for the realty sector. In an evolved market like Mumbai, the growth of prices showcases the rising interest form homebuyers. The current surge in demand for premium housing is likely to further fuel prices and in turn, makes it a great time to invest as well as purchase residential property," said Ram Raheja, Director at S Raheja Realty.
