Mumbai: Luxury home prices in Mumbai inched up 1.1% in the year ended March, making it the only city in the country which saw a price growth in the luxury category, global property consultant Knight Frank said.
Mumbai is ranked 24th among 41 global cities in terms of price rise for luxury homes said the latest Knight Frank Prime Global Cities Index released on Tuesday. Prices of luxury properties in two Indian cities—Delhi and Bengaluru —on the global list fell by 2.6% and 0.2%, respectively, during the period.
Samantak Das, chief economist and national director, Knight Frank India said luxury home markets at Indian metros were “probably still recovering from the short-term shocks of the demonetisation last year.”
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“From nearly a year-on-year price growth of 3% until two years back, the prime residential market in Delhi has seen negative growth of almost similar measure in the quarter-ending March 2017. Likewise from a staggering year-on-year growth of 13.6% in 2015, Bengaluru recorded negative growth for the first time in five years,” he said.
Chinese cities of Guangzhou, Beijing and Shanghai topped the index with an average price growth of 26.3%. Globally, financial hubs such as Zurich, London and Milan have recorded negative growth.
“Mumbai did better than many global financial centres but the price growth in the quarter ending March 2017 has taken it back to Q1 2013 levels after touching a high of 3.2% price growth in 2015,” Das said.
As per the report, emerging tech hubs such as Seoul (17.6%), Stockholm (10.7%), Berlin (8.7%) and Melbourne (8.6%) outshined established global financial centres but price growth in Bengaluru, India’s IT capital, was not in sync with the global trend.
Property prices in the US also saw a steady surge but luxury home rates in Toronto grew 22.2% almost three times of Vancouver which saw a growth of 7.9%.
Asian cities such as Hong Kong (5.3%) and Singapore (4%) fared better following years of ordinary performance. Although prime rate in London fell by a sharp 6.4%, the performance in the quarter ending March 2017 indicates stabilisation, the report said.