[ecis2016.org] Among Indian cities, Delhi witnessed the biggest increase in the prices of luxury properties, at 4.4% year on year in the April-June quarter, according to Knight Frank’s Prime Global Cities Index
The values of luxury properties in India’s capital Delhi, have increased by 4.4% in the April-June quarter on an annual basis, according to Knight Frank’s Prime Global Cities Index. This increase in price accounts for Delhi occupying the 10th spot, in a list of 46 global cities. Delhi, however, slipped three places from its earlier position of seven in the previous list. In this edition, the Prime Global Cities Index analysed the luxury market in 46 cities across various continents. On an average, values of luxury housing increased by 1.4 per cent in April-June quarter of 2019. Also, six of the top 10 cities were from Europe.
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Bengaluru and Mumbai have also seen the values of luxury properties growing in the past year, an ongoing slowdown and the government’s continued focus on affordable housing, notwithstanding. While luxury housing in Bengaluru became more expensive by 2.8%, earning it the 15th position in the index, with a mere 0.8% 12-monthly change, Mumbai features at the 30th rank of the Prime Global Cities Index across 46 markets as compared to 31st rank in Q1 2019. Incidentally, Mumbai has witnessed a significant slowdown in the luxury residential markets which is suffering from the problem of high inventory and slow sales velocity.
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According to a Knight Frank statement, the weighted average capital value of luxury properties in Delhi currently stands at Rs 33,511 per sq ft. “By virtue of limited supply of luxury properties, New Delhi saw a rise in weighted average value,” Knight Frank said. The weighted average capital value of luxury properties in Mumbai, is currently Rs 64,746 per sq ft, while it is Rs 19,000 per sq ft in Bengaluru.
“The marginal increase in prices, along with poor buyer sentiment suggests that demand for luxury homes is likely to remain tepid. Continuous influence of global economic headwinds has prodded leading policymakers in developed and emerging markets alike to respond through policy measures including a cut in interest rates. When it comes to the prime residential markets, key European cities lead with the highest growth. These markets have become increasingly popular investment hubs for European and global investors with a growing presence from Chinese residential buyers. Back home, the Indian residential market continues to focus on affordable and mid–segments due to structural reforms supporting this segment. However, growth in the prime property markets in Mumbai and Bengaluru could be viewed as a sign of stabilisation. Regardless of a slip in rank for the Delhi market, a positive 12–month increase 4.4% is healthy as we track the most prime and mature residential pockets in case of Delhi”said Shishir Baijal, chairman and managing director, Knight Frank India
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Global luxury property price trends
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With prices of luxury property appreciating by 12.7% in the past year, the German capital Berlin continued to occupy the top spot at the index. Frankfurt and Moscow were placed at the second and third places on the list, with property values increasing by 12% and 9.5%, respectively. Manila (fourth position with 6.2% appreciation in values) and Beijing (ninth position with 4.5% appreciation in values) were the only Asian cities, where the weighted average capital value of luxury properties appreciated more than those in Delhi.
The average annual price growth across 46 cities stood at 1.4%, a marginal increase from 1.3% seen in March 2019. Of the 46 cities analysed in the list, luxury property values appreciated in all but 11 cities. Prices declined the most in Vancouver (13.6%) and Istanbul (9.9%), which were placed at 46th and 45th spots, respectively in the index. Values of luxury properties have also declined in New York (3.7%), London (4.9%) and Dubai (6%), the index showed.
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Category: Lifestyle
