New Delhi and Mumbai have moved one spot down to 32nd and 36th rank respectively, while Bengaluru has moved down four spots to 40th rank in the latest Knight Frank’s Prime Global Cities Index Q1. The Prime Global Cities Index is a valuation-based index tracking movement in prime residential prices in local currency across 45-plus cities worldwide using Knight Frank’s global research network.
India’s top property markets have witnessed a slight decline in the prime residential prices. Mumbai’s prime residential market registered a decline of 0.1% with an average price of Rs 63,758 per square feet. Bengaluru, on the other hand saw a decline of 2.7% year-on-year in prime residential prices. New Delhi on the global index remained unchanged in terms of annual capital value change in prime residential market to an average price of Rs 33,572 per square feet.
Prime residential property is defined as the most desirable and most expensive property in a given location, generally defined as the top 5 per cent of each market by value.
The report said 26 cities witnessed a rise in prime residential prices in Q1 2021. Eleven cities registered double-digit priced growth up from just one a year ago. About 67 per cent of global cities registered flat or positive yearly price growth.
While Shenzhen recorded the strongest performing world region with a growth of 18.9 per cent, New York was the weakest performing market with negative 5.8 per cent growth.
Some of the world’s top metropolises, New York, Dubai, London, Paris and Hong Kong are seeing prices soften. The report said that there are a combination of factors behind each city’s negative growth, from long and stringent lockdowns to a backlog of supply and from higher taxes to policy constraints, but in most cases we expect a return to growth in the second half of 2021 once travel bans ease, cross border transactions resume and consumer confidence ticks upwards.