Bengaluru witnessed a growth of 2 percent on a 12-month basis and 0.8 percent on a 3-month basis and took the 20th position on the Prime Global Cities Index.
Global luxury residential prices registered the lowest growth at 1.3 percent across 45 global cities. Berlin topped the list with 14 percent growth, followed by Frankfurt at 10 percent.
Delhi secured a spot among the top 10. Ranked at the 7th position, prime property prices recorded a growth of 5.8 percent on a 12-month and 4.4 percent on a three-month basis, says the Prime Global Cities Index by Knight Frank.
Bengaluru witnessed a growth of 2 percent on a 12-month basis and 0.8 percent on a 3-month basis and took the 20th position on the index.
At 31st rank, Mumbai registered a dismal growth by 0.6 percent on a 12-month basis and 0.3 percent on a 3-month basis, indicating a momentum in the affordable and mid-segment housing category, the index said.
The Prime Global Cities Index highlights that luxury residential prices have registered its lowest rate of annual growth since the final quarter of 2009. Two years ago, prime property prices were rising at an average rate of 4.3 percent per annum, which has now slowed to 1.3 percent, the report said.
The dip in the growth during the first quarter of 2019 is said to be attributed to the looming threat of a global trade war, uncertainty surrounding Brexit and the International Monetary Fund's projection that 70 percent of world’s economies would see a slowdown in growth in 2019.
The index increased by 1.3 percent in the year to the first quarter of 2019, its lowest annual rate of growth since the fourth quarter of 2009.
"The Indian residential market has been stagnant for a considerable period of time with sales velocity, especially of prime property, remaining slow causing significant inventory overhand across major markets. Further, developers have also shifted their focus on higher traction segments of the market which is affordable and mid segment due to concentrated demand and the conducive environment created for these segments on the back of policy reforms and sops," said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
However, a growth in the prime property market across key Indian cities should be viewed as a positive sign and going forward we must track the progress for the next couple of quarters to ascertain that the sector is moving towards recovery, he said.With regards to global cities besides the top three – Berlin, Frankfurt and Edinbugh, Russia and CIS also emerged as the strongest performing region in the first quarter of 2019.
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