Luxury home prices in Delhi & Bengaluru falls; Mumbai sees marginal surge: Knight Frank Report
According to latest report by property consultancy Knight Frank named ‘Knight Frank Prime Global Cities Index Q2 2017’, luxury home prices in Delhi and Bengaluru declined by 0.8% and 0.3%, respectively, between June 2016 and June 2017.
Mumbai, however, witnessed a marginal increase in luxury home prices by 0.8% between June 2016 and June 2017, showed the report. Globally, Mumbai was placed at the 24th position in terms of growth in luxury home prices, followed by Bengaluru at 29th and Delhi at 31st spot.
According to Samantak Das, chief economist and national director – research, Knight Frank India, prime resindential market in the country’s top three cities of Mumbai, Bengaluru and Delhi are under tremendous pressure. He said, “It is interesting to note that Bengaluru, the most resilient market, has also suffered a decline. The pressure will continue for some more time because we believe that the catalysts for growth pertaining to prime residential market are yet to come back.”
Chinese cities continued their domination in the market with Guangzhou topping the list with a staggering surge of 35.6% in luxury prices. But all three Chinese cities saw a decline in annual growth compared to the previous quarter amid the lending restrictions on home purchases. Beijing, witnessed the steepest drop from 22.9% year-on-year in March 2017 to 15% annual growth in the quarter ending June.
The momentum resonated in Europe as well courtesy a combination of factors such as safe haven capital flows, Brexit and recent addition of top grade stock in these markets. Cities such as Madrid (10.7%), Berlin (9.7%), Paris (8.8%), and even Dublin (3.8%) recorded a marked increase in their annual growth rate.
Knight Frank Prime Global Cities Index, which tracks the movement in luxury residential prices across 41 cities worldwide, rose by 4.4% in the year to June 2017.