Bengaluru sees housing price decline of 0.8 % year-on-year

Hyderabad, Chennai, and Kolkata also made their way into the worldwide index

Hyderabad stood at 122nd position globally in terms of annual appreciation in housing prices during October-December 2020 as rates for residential properties in the city rose marginally, according to Knight Frank.

As per Knight Frank's Global Residential Cities Index Q4 2020, Bengaluru was at 129th position, Ahmedabad 143rd, Mumbai 144th, Delhi 146th, Kolkata 147th, Pune 148th and Chennai at the 150th place in the global list.

"Hyderabad is the only Indian city globally to witness residential price appreciation in Q4 2020, positioning at 122nd rank with a marginal 0.2 per cent year-on-year (y-o-y) rise in home prices," Knight Frank India said in a statement.

Chennai was the lowest-ranked Indian city at the 150th spot, registering a 9 per cent decline in home prices during October-December 2020 as compared to the corresponding period of the previous year.

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Among the other Indian cities that have seen de-growth in home prices, Bengaluru saw a decline of 0.8 per cent y-o-y, followed by Ahmedabad 3.1 per cent, Mumbai 3.2 per cent, and Delhi 3.9 per cent.

Kolkata witnessed a y-o-y decline of 4.3 per cent in home prices, while Pune fell 5.3 per cent.

Globally, Ankara (Turkey) ranked first with an annual price appreciation of 30.2 per cent, followed by Izmir in Turkey with a 29.4 per cent increase and Istanbul with a 27.9 per cent rise.

Auckland in New Zealand is at 4th place with an appreciation of 26.4 per cent, St Petersburg in Russia at 5th position with a 25.4 per cent rise.

As per the list, Seoul in South Korea was ranked 6th with a 22.3 per cent increase in housing prices, followed by Moscow in Russia with a 21.1 per cent rise.

Ottawa Gatineau in Canada is at 8th position with a 19.7 per cent rise, Wellington in New Zealand was ranked 9th with an 18.4 per cent surge in prices.

Halifax in Canada ranked 10th with an annual appreciation of 16.3 per cent in home prices.

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Prices across the 150 cities worldwide increased by 5.6 per cent on average in 2020, up from 3.2 per cent in 2019.

The report highlighted that 81 per cent of cities saw prices rise in 2020, and the index's annual rate of growth increased for the sixth consecutive quarter in Q4 2020. Besides, 20 per cent of cities registered double-digit growth in the year.

Shishir 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, he said.

"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," Baijal said.