Mumbai: The onset of the second wave of the Covid-19 pandemic and fluctuations in vaccine rollout has put pressure on the values of prime residential properties, suggests reports.
According to Knight Frank's Global House Price Index, India has moved down 12 spots to 55th rank in Q1 2021.
During Q1 2020, India was in the 43rd rank in terms of property prices.
According to Shishir Baijal who is chairman and managing director, Knight Frank India, the decline in prices of prime residential properties in India during the first quarter of 2021 can be attributed to multiple factors such as uncertainty around the second wave of the COVID-19 pandemic, high liquidity in capital markets, as well as the backlog of supply.
Home prices in India declined 1.6 per cent on a year-on-year basis, said a Knight Frank statement.
However, in terms of 6-month (Q3 2020-Q1 2021) and 3-month (Q4 2020-Q1 2021) changes, residential prices in India witnessed a growth of 0.6 per cent and 1.4 per cent, respectively.
The report showed that the US witnessed the highest annual price growth rate since 2005, with a 13.2 per cent increase YoY.
On a year-on-year basis, Turkey continues to lead the annual rankings with prices up by 32 per cent YoY, followed by New Zealand at 22.1 per cent YoY growth and Luxembourg with a 16.6 per cent rise in prices.
Spain was the weakest-performing territory in Q1 2021, where home prices fell by 1.8 per cent YoY, followed by India with a 1.6 per cent decline.
"In Q1 2021, India witnessed meaningful recovery in sales volumes, helping housing prices remain stable. In the preceding quarters, the residential markets had been on a path of rebound with markets such as Mumbai and Pune achieve pre-covid levels of activities." Baijal added.