Bengaluru ranks 26th globally in annual price rise of luxury homes

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Prime residential property is defined as the most desirable and most expensive property in a given location. Image: Shutterstock
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New Delhi: Bengaluru and the national capital ranked 26th and 27th, respectively, globally in annual price appreciation of luxury residential properties, according to Knight Frank report.

Mumbai is at 32nd position, the consultant said in its 'Prime Global Cities Index Q2 2020' report.

While Bengaluru and Mumbai moved up by one place each, Delhi jumped five notches as compared with the previous report of Q1, 2020.

The capital value increased 0.6 per cent in Bengaluru and 0.3 per cent in the national capital, but fell 0.6 per cent in Mumbai during the April-June quarter this year, compared with the same period last year.

Knight Frank said that Bengaluru has emerged as the 26th fastest-growing prime residential market in the world, in terms of annual price appreciation. Rates were up 0.60 per cent in Q2, 2020 to an average price of Rs 19,727 per sq ft

Delhi ranked 27th on the global index, with a 0.30 per cent rise in terms of annual capital value in the prime residential market to an average price of Rs 33,625 per sq ft.

Mumbai's prime residential market ranked 32nd in Q2 2020, registering a decline of 0.60 per cent with an average price of Rs 64,388 per sq ft, the report said.

The Prime Global Cities Index, an unweighted price index of prime residential prices across 45 cities, increased by 0.9 per cent, recording the lowest rate of annual growth in 11 years.

The Phillippine capital Manila leads the index with prime home prices rising by 14.4 per cent over the 12 months to June 2020, followed by Japan's Tokyo (8.60 per cent) and Sweden's Stockholm (4.40 per cent).

Thailand's capital Bangkok was the weakest-performing global city in the year to June 2020, with luxury home prices falling by 5.8 per cent, the consultant said.

Knight Frank India CMD Shishir Baijal said, "The pandemic infused economic stress has engulfed the global markets with a fear of uncertainty. Ultra-rich buyers around the world are seen deferring the high premium purchase of a prime residential asset class and preferring investments in liquid assets, primarily gold and cash equivalents."

With the expected price correction and uptick in sentiment depending on the news related to vaccine discovery, buyers with adequate liquidity would find value to enter the prime residential asset class in India, he added.

Prime residential property is defined as the most desirable and most expensive property in a given location, generally defined as the top 5 per cent 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 40+ cities worldwide using data from Knight Frank's global research network.

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