Delhi lists at 27th place, Mumbai & Bengaluru follow among fastest-growing prime residential markets globally: Knight Frank Report

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Delhi has performed better than Mumbai and Bengaluru and is ranked 27th on Knight Frank’s global index that measures annual price appreciation of luxury residential properties. Mumbai and Bengaluru were placed at the 33rd and 34th positions, respectively.

The capital’s prime residential market performed better than Mumbai and Bengaluru. Globally, the city ranked 27th with a 0.2 percent annual price change for the period Q3 2019 – Q3 2020; with a decline of 0.1 percent price change in Q3 2020 compared to the previous quarter.

Mumbai ranked 33rd with -1.3 percent annual price change for the period Q3 2019 – Q3 2020. The city saw also saw a decline of 0.7 percent price change in Q3 2020 compared to Q2 2020.

Bengaluru ranked 34th with a decline of 1.4 percent annual price change for the period Q3 2019 – Q3 2020. The city registered a price decline of -1.5 percent in Q3 2020 compared to the previous quarter, the report said.

The prime residential market of Mumbai, though expected to see a flat annual price change in 2021 (Dec 20 – Dec 21), is likely to witness a buoyancy in demand for the prime properties. Knight Frank’s research analysis, expects 20 of the 22 cities to see prices remain flat or increase in 2021, a slight reversal of the trend seen in 2020, where analysts expect nine cities to end the year with lower prices.

Knight Frank’s research analysis, expects 20 of the 22 cities to see prices remain flat or increase in 2021, a slight reversal of the trend seen in 2020, where analysts expect nine cities to end the year with lower prices.

Shanghai and Cape Town lead the forecast for 2021 with annual price growth of 5 percent forecast in 2021 whereas Buenos Aires is expected to be the weakest-performing global city, with prime residential prices falling by -8.0 percent in the same year.

“With the modest price correction in the Indian real estate sector, post-lockdown, the luxury market has seen significant traction,” Knight Frank India CMD Shishir Baijal said.

He said, “buyers are responding favourably to residential purchase across segments including luxury as sale prices have corrected in the last few quarters making an investment in property attractive”.

The report tracks the movement in prime prices across 45 cities. “A year ago, the index rose at a rate of 1.1 per cent per annum, climbing to 1.6 per cent by the end of September 2020,” the consultant said.

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