Mumbai residential mkt show -9.1% growth in 1 year

Prime property prices have risen in the December-March quarter 2012 in four Asian markets barring Mumbai, Shanghai and Beijing and Sydney, says property consultant Knight Frank in its Global Cities Index report. Asian cities which saw a rise in property prices are Jakarta (3.3% in Sept-Dec 11), Hong Kong (1.1%), Singapore (1.9%) and Kuala Lumpur.  But Mumbai prime property market not only remained stagnant in the  September 2011-March 2012 period but also fell negative 9.1% in the last one year ending March 2012 . Prime property corresponds to the top 5% of the mainstream housing market in each city.

In a recent Knight Frank report "Prime world city markets turn negative," Mumbai  is placed at the bottom of the heap as its property prices recorded the steepest fall in the 23-city index. The Prime global city index of Knight Frank was established in 2011 and takes into account eight cities in Asia Pacific. Sydney is the second-last ranked city in the index, but data for this city is available only till December 2011.

Below are the key finding of the Knight Frank Prime Global Cities Index report:

* The index recorded its first quarterly fall since 2009 with prices falling on average by 0.4% in Q1 2012
* Overall, the index rose 1.4% in the 12 months to March 2012
* Mumbai’s residential market shows a negative growth of -9.1% from March 2011 March 2012
* Prime markets in North America performed strongly, prices increased by 7.7% on average in the last 12 months
* Nairobi (up 24%) was the strongest performer in the last 12 months
* Prices in Dubai (up 4%) rose the most in the last 3 months

Source: Knight Frank Residential Research