India has slipped 13 spots to finish last in the recently published Global Home Price Index for the quarter ending December 2020. As opposed to its 43rd rank a year ago, India saw a decline of 3.6% year-on-year to finish at the 56th place last year. The rankings were published by Knight Frank — a leading global real estate consultant.

The index tracks the rise and fall of mainstream housing prices across the globe using real estate statistics. While Turkey continues to lead with 30.3% increase in real estate prices, New Zealand came a close second followed by Sovakia. The report also highlighted the fact that 89% of the countries saw an increase in housing prices, while some like India and Morocco saw a drop in prices for the fourth quarter of 2020. 

The Asia Pacific region has performed poorly despite its efficient handling of the pandemic. Although New Zealand stood in the second place, Japan, Malaysia and Hong Kong have all slipped into the negative territory. 

The Indian property market seemed to have been particularly vulnerable to the forces unleashed by the Covid-19 pandemic. But the Central and the local governments have already taken initiatives to prevent further fall. Home loan interest rates have come down to a historic low, while stamp duties and other levies and surcharges have been cut to boost demand. Although these measures had fueled the demand for housing in the latter part of 2020, the overall prices have remained at bay. But experts believe that in 2021, housing sales are going to increase with a concomitant rise in housing prices.

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By: Ratnabir