India has moved down 7 spots in the worldwide property price tag index to the 54th rank in Q3 2020 from the 47th rank it had accomplished in Q3 2019, with a decline of 2.4% year-on-year (YoY) in property costs, says Knight Frank. However, the ranking of India compared to the earlier quarter (Q2 2020) remains unchanged at 54th spot amongst the 56 nations and territories tracked in the Q3 2020 index.
According to its Global House Price Index Q3 2020 report, Ireland, Spain, India and Hong Kong are amongst these nations and territories witnessing the weakest price tag development year-on-year.
It may perhaps be noted that the Global House Price Index tracks the movement in mainstream residential costs across 56 nations and territories worldwide applying official statistics. In the 12-month percentage transform for the period Q3 2019 – Q3 2020, Turkey continues to lead the index for the third consecutive quarter with annual price tag development of 27%. However, in true terms as soon as inflation of 14% is deducted, annual price tag development sits closer to 13%. Overseas interest from the Middle East and a buoyant economy are bolstering costs, GDP enhanced 16% in Q3 compared to Q2. New Zealand (15%) jumped from 11th to second location amongst Q2 and Q3 as the nation saw demand raise post-lockdown. Residential sales totalled 8,618 in Q3 2020, up 41% from 6,112 a year earlier. Morocco was the weakest-performing territory in Q3 2020, with property costs falling to 3.3% YoY.
Knight Frank India’s current report titled ‘India Real Estate Update (July – September 2020)’ – which analyses the residential and workplace market place performances across eight main cities for the Q3 2020 period – estimates that property sales volume jumped by 2.5 instances to 33,403 units in Q3 2020 compared to 9,632 in Q2 2020. New residential unit launches enhanced by 4.5 instances to 31,106 units in Q3 2020, compared to 5,584 units in the earlier quarter.
Mainstream residential costs across 56 nations and territories worldwide saw a slight price tag correction, which stood at an annual price transform of 4.5% on typical, compared to Q2 2020 at 4.7%. According to the report, 16% of the surveyed worldwide nations and territories registered a decline in yearly price tag development. In Q2 2020, a lot of housing markets remained frozen and saw a sharp rebound in sales and costs in Q3 2020, such as New Zealand, UK and the US, even though other folks witnessed only a marginal effect on pricing such as China, France and Germany.
Commenting on the identical, Shishir Baijal, Chairman & Managing Director, Knight Frank India, stated, “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. 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.”