New Delhi has emerged as the 10th fastest growing prime market in the world with an annual capital value growth of 4.4% in the second quarter of 2019. However, the property market has slipped three places in the overall ranking during the quarter from 7th position in the first quarter, showed Knight Frank’s Prime Global Cities Index.
Other key Indian cities Bengaluru with 2.8% rise and Mumbai with 0.8% appreciation were ranked 15th and 30th on the list, respectively, showed Knight Frank’s Prime Global Cities Index.
The index tracks the movement in luxury residential prices across 46 cities globally. The index highlights that luxury residential prices across these markets have registered an average increase 1.4% in the year to June 2019 period.
New Delhi, by virtue of limited supply of luxury properties saw a rise in weighted average of capital values which were recorded at Rs 33,511 per sq ft recording an annual rise of 4.4%. New Delhi has slipped three places in the overall ranking during the quarter from 7th position in the first quarter to 10th position.
“The marginal increase in prices, along with poor buyer sentiment suggests that demand for luxury homes is likely to remain tepid…Back home, the Indian residential market continues to focus on affordable and mid-segments due to structural reforms supporting this segment. However, a growth in the prime property markets in Mumbai and Bengaluru could be viewed as a sign of stabilisation,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India
Bengaluru that featured at the 15th rank of the Prime Global Cities Index as compared to 20th rank in the first quarter of 2019. Bengaluru recorded a weighted average capital value of prime markets at approximately Rs 19,000 per sq. ft. recording an annual increase of 2.8%. Mumbai featured at the 30th rank with a mere 0.8% 12-monthly change, recording a weighted average capital value for prime properties at Rs 64,764 per sq. ft.
Berlin continued to lead the index. However, its rate of annual growth has slowed from 14.1% in March 2019 to 12.7% in June 2019. Frankfurt, by comparison, has seen its annual price growth increase from 9.6% to 12.0% over the same period and managed to secure second rank replacing Moscow.