The global prime residential pricing has registered an increase of 1.9% year-on-year. Luxury housing markets performed better than expected in 2020, with 66 of the 100 markets featured in PIRI recording annual price growth of 2%, according to Knight Frank’s Prime International Residential Index (PIRI 100).
PIRI 100 tracks the movements in luxury residential prices across the world’s top residential markets.
Globally, Delhi ranked 72nd in terms of luxury residential prices which remained marginally lower at -0.1% YoY in 2020. Mumbai (ranked 77th) and Bengaluru (ranked 79th) registered a decline of 1.5% and 2.0% YoY respectively in prime residential prices.
With respect to the PIRI 100 list, Auckland, in New Zealand tops the table by registering an annual price rise of 17.5% YoY, while Buenos Aires, in Argentina was the worst-hit city globally, down by 12% YoY.
“Expectations of second homes are increasing. With greater flexibility around remote working, owners are lengthening their stays with many now viewing them as ‘co-primary’ homes. From fast broadband to cinema rooms, gyms and A-grade technology, a second home now has a long wish list to fulfil,” said Kate Everett-Allen, head of international residential research at Knight Frank.
How much space can $1 million buy?
Monaco continues its reign as the world’s most expensive city where $1 million can get you 15 square metres of space in 2020. In Hongkong, the same amount can enable you to buy 23 sq m and in London it is 31 sq m. Comparatively in Mumbai, you can purchase 106 square metres (1141 sq. ft.) of prime residential real estate, a 3.7% increase compared to 102 square meters (1100 sq. ft.) in 2019. In Delhi, 202 sq m can be bought and in Bengaluru, 351 sq m.
“2020 has been a year that saw COVID-19 influenced slowdown not only in the real estate industry but overall, in the economy. The policy decisions by the Maharashtra and Karnataka governments to reduce the stamp duty have acted as a counterbalance to the disruption caused by the pandemic. The luxury residential sales saw an exponential surge in Mumbai in Q4 2020 and the demand outlook for 2021 remains resilient. The current market price offers a premium value to make a luxury residential asset purchase in Indian cities for both domestic and global wealthy individuals,” said Shishir Baijal, chairman and managing director, Knight Frank India.