India slips 13 spots on global home price index due to Covid: Knight Frank

India finished last at 56th rank in the quarter ending December 2020, according to the international property consultancy

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.