New Delhi is ranked 38, Mumbai 39 and Bengaluru 42 in Knight Frank’s Prime Global Cities Index Q3 2021. Bengaluru moved down one spot up against the previous quarter in the index as the quarter registered a 1.1 percent YOY price fall in the prime markets. Mumbai moved up to the 39th position in Q3 2021, against its 40th rank in the previous quarter, as prices fell marginally by 0.1 percent YOY.
Mumbai, Delhi and Bengaluru’s prime residential market is witnessing price stability on a QoQ basis. Delhi is ranked 38th with a stable price level for the period Q3 2020 – Q3 2021. Mumbai ranked 39th with a marginal -0.1 percent annual change for the period Q3 2020 – Q3 2021. Prime residential properties in the city registered a price appreciation of 0.2% in Q3 2021 compared to the previous quarter, the report said.
Bengaluru ranked 42 with a -1.1 percent annual price change for Q3 2020 – Q3 2021. The city witnessed no price change in Q3 2021 compared to the previous quarter.
Prime residential property is defined as the most desirable and most expensive property in a given location, generally defined as the top 5 percent of each market by value. The Prime Global Cities Index is a valuation-based index tracking the movement in prime residential prices in local currency across more than 45 cities worldwide using Knight Frank’s global research network.
According to Knight Frank’s research analysis, 39 cities witnessed a rise in prime residential prices between Q2 and Q3 – 2021. Fifteen cities registered double-digit priced growth. The Prime Global Cities Index, an unweighted price index of prime residential prices across 45+ cities, increased by 9.5 percent in the year to Q3 2021 compared to 8.2 percent in the year to Q2 2021.
“As India’s economy recuperates from the impact of the pandemic and lockdown, the up-market segment of luxury homes is witnessing a surge in demand. The drivers for this demand are bottoming out of the prices across Indian cities along with various fiscal measures, which has made the overall environment very conducive for the residential sector. As developers and other industry stakeholders hold a positive sentiment, the segment is expected to record improved levels of activity,” said Shishir Baijal, Chairman and Managing Director at Knight Frank India.
Miami was the best performing city in the index during the period, where luxury home prices appreciated 26.4 percent.