Mumbai records 3.2% decline in residential prices: Knight Frank

www.newsbarons.com

Residential prices across 150 cities globally increases by 5.6% on average in 2020: Knight Frank Report.

Highlights:

• Bengaluru ranked 129 with 0.8% decline in residential prices
• Ahmedabad ranked 143 with 3.1% decline in residential prices
• Mumbai ranked 144h with 3.2% decline in residential prices
• Delhi ranked 146 with 3.9% decline in residential prices
• Kolkata ranked 147 with 4.3% decline in residential prices
• Pune ranked 148 with 5.3% decline in residential prices
• Chennai ranked 150 with 9.0% decline in residential prices

In its latest report Global Residential Cities Index Q4 2020, Knight Frank, a leading international property consultancy, has featured Hyderabad as the only Indian city globally to witness residential price appreciation in Q4 2020, positioning at 122nd rank with a marginal 0.2% year-on-year (YoY) rise in home prices. In terms of the de-growth of residential prices, Chennai was the lowest-ranked Indian city standing at the 150th spot, registering a 9.0% decline in home prices.

Prices across the 150 cities worldwide increased at 5.6% on average in 2020, up from 3.2% in 2019. The report highlighted that 81% of cities saw prices increase in the year to Q4 2020, the index’s annual rate of growth increased for the sixth consecutive quarter in Q4 2020. 20% of cities registered double-digit price growth in the year to Q4 2020.

In Q4 2020, residential sales in Hyderabad jumped up by 127% QoQ to 3,651 units as compared to 1,609 units in Q3 2020. This can be attributed mainly to festive season promotions and the COVID-induced push for newer homes with a better layout, thereby accommodating the new work requirements from home.

Among the other Indian cities that have seen de-growth in home prices below 5%, Bengaluru was ranked at the 129th spot with a decline of 0.8% YoY, followed by Ahmedabad at the 143rd rank with a decline of 3.1% YoY, Mumbai ranked 144th with a fall of 3.2% YoY, and Delhi was ranked at the 146th spot with a decline of 3.9% YoY in prices. Kolkata witnessed a decline in home prices of 4.3% YoY, standing at 147th spot in the table. Some of the Indian cities which have seen de-growth of above 5%, were Pune (148th rank) and Chennai (150th rank) with 5.3% YoY and 9.0% YoY decline, respectively in Q4 2020.

The Global Residential Cities Index tracks the movement in mainstream residential prices across 150 cities worldwide using official statistics. Ankara in Turkey leads the Global Residential Cities Index Q4 2020 with the highest growth rate of 30.2%, followed by Izmir in Turkey and Istanbul in Turkey at 29.4% and 27.9%, respectively.

THE KNIGHT FRANK GLOBAL RESIDENTIAL CITIES INDEX Q4 2020

            RANKED BY ANNUAL % CHANGE

Rank

City

Country/Territory

12-Month % Change

(Q4 2019-Q4 2020)

1

Ankara

Turkey

30.2%

2

Izmir

Turkey

29.4%

3

Istanbul

Turkey

27.9%

4

Auckland

New Zealand

26.4%

5

St. Petersburg

Russia

25.4%

6

Seoul

South Korea

22.3%

7

Moscow

Russia

21.1%

8

Ottawa Gatineau

Canada

19.7%

9

Wellington

New Zealand

18.4%

10

Halifax

Canada

16.3%

122

Hyderabad

India

0.2%

129

Bengaluru

India

-0.8%

143

Ahmedabad

India

-3.1%

144

Mumbai

India

-3.2%

146

Delhi

India

-3.9%

147

Kolkata

India

-4.3%

148

Pune

India

-5.3%

150

Chennai

India

-9.0%

Source: Knight Frank Research

TOP 8 CITIES: ANNEXURE QUARTERLY SPLIT OF RANKING AND PRICE CHANGE

www.newsbarons.com

www.newsbarons.comShishir Baijal, Chairman & Managing Director, Knight Frank India said “The performance of Hyderabad’s residential market has remained consistent all through the pandemic, with the city’s real estate market maintaining annual price growth in each quarter, all through 2020. This performance can largely be attributed to the city being a preferred destination by professionals from IT/ITeS companies. The Indian residential market has strongly rebounded over the last three quarters with the pandemic experience on owning houses, lower prices and multi-decade low home loan interest rate. The Government interventions on stamp duty cut in key markets also helped the sector gain momentum back to pre-Covid levels.”