Knight Frank India CMD Shishir Baijal says residential sector has been impacted by low demand across most markets in India and thatcoronavirus-induced slowdowns have adversely affected sectors and homebuyers' buying power
India's ranking in terms of appreciation in residential prices slipped 11 places to 54th place in Q2, a report by property consultant Knight Frank said. Housing prices declined about 2 per cent during the June quarter as compared to the year-ago period, placing India on the 54th spot among total 56 nations tracked for housing price appreciation.
As per Knight Frank's 'Global House Price Index Research' for Q2, 2020, housing prices in India declined 1.9 per cent Y-o-Y in Q2. The data in this report is backward-looking, covering the year up to June 30, 2020, when the COVID-19 pandemic had hit most global markets, Knight Frank said. Hong Kong, which ranked 56th, was the weakest performing market with housing prices falling by 2.8 per cent Y-o-Y in Q2. Malta, which was on 55the place, also saw prices falling 2.6 per cent.
Knight Frank tracks the movement in mainstream residential prices across 56 countries and territories worldwide using official statistics. Turkey leads the annual rankings in the year to Q2 2020, with a 25.7 per cent Y-o-Y rise in housing prices. Turkey was followed by Luxembourg at 13.9 per cent and Lithuania with a 12.4 per cent increase in (housing) rates. "...but it's worth noting inflation currently sits at around 12 per cent. European countries occupy eight of the top 10 rankings this quarter with Baltic, Central and Eastern European nations well represented," Knight Frank said.
New Zealand, Germany, and South Korea, three countries that were initially thought to have dealt with the pandemic most effectively registered mixed results. Germany is yet to report Q2 figures, New Zealand slumped from second to 11th place in the rankings between March and June and South Korea, where price growth was anaemic at 0.1 per cent in Q1, has seen an annual price growth pick up of 1.3 per cent.
Knight Frank India CMD Shishir Baijal said the residential sector has been impacted by low demand across most markets in India. He added that the coronavirus-induced slowdowns have adversely affected the sector and homebuyers' buying power. According to Knight Frank, these trends suggest the impact of the pandemic on global housing markets is likely to be "inconsistent and irregular." Much will depend on the state of the housing market prior to the pandemic, the length and severity of the lockdown, and each country's reliance on international demand, the property consultant said.