Global House Price Index
Source : Economic Times
GS III : Indian Economy

Why in News ?

Housing prices in India fell 1.6 per cent in January-March this year compared to the same period of 2020.

• The country stands low at 55th rank in a global list based on annual price appreciation, according to Knight Frank.

Key Facts

• India has moved one place up at 55th rank and is ahead of only Spain in the list of 56 countries worldwide.
• Turkey continues to lead the annual rankings with prices up by 32 per cent year-on-year
• It was followed by New Zealand (22.1 per cent) and Luxembourg (16.6 per cent).
• Spain was the weakest-performing territory where home prices fell by 1.8 per cent.
• Residential prices in India grew 1.4 per cent in January-March 2021 compared with the previous quarter.
• United States witnessed the highest annual price growth rate since 2005, with a 13.2 per cent increase YoY.
• Mainstream residential prices averaged across 56 countries and territories in Q1 2021 grew 7.3 per cent, which records the fastest growth in prices since Q4 2006.
• With the onset of the second wave and the threat of new variants of the virus along with the fluctuation in vaccine rollout there could be a pressure on sales volumes as well as on price growth.

India in Global House Price Index

• In the previous report released in March this year, India’s ranking was 56th.
• Home prices fell by 1.6 per cent in India and marked just above Spain.
• India witnessed meaningful recovery in sales volumes helping housing prices remain stable.
• What is the reason for slow down ?
  • The local housing market was already struggling to attract enough buyers, the current crises have resulted in a fall in average home rates.

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