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Delhi falls 5 positions in Prime Global Cities Index

New Delhi, Aug 19: Delhi has slipped five spots, to the 37th position, in Knight Frank’s Prime Global Cities Index Q2 2021.

In Q1, Delhi’s ranking was 32nd in the global index.

In a statement, Knight Frank India said that Delhi saw a marginal decline of 0.2 per cent year-on-year (YoY) in prime residential prices, leading to the drop in global position from 32nd rank in Q1 2021 to 37th rank in Q2 2021.

The premium micro-markets of the city remained unchanged on a QoQ basis in Q2 2021 to record an average price of Rs 33,572 per square feet.

Global Prime Residential Index has witnessed an annual increase of 8.2 per cent.

Mumbai and Bengaluru also moved down to 40th and 43rd rank in Q2 2021, compared to 36th and 40th rank in Q1 2021, respectively. Bengaluru saw a decline of 2.7 per cent in terms of annual capital value change in the prime residential market to an average price of Rs 19,200 per square feet.

Mumbai’s prime residential market registered a marginal decline of 1.1 per cent with an average price of Rs 63,697 per square feet.

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 more than 45 cities worldwide using Knight Frank’s global research network.

According to Knight Frank’s research analysis, 35 cities witnessed a rise in prime residential prices in Q2 2021 (YoY). Around 13 cities registered double-digit priced growth up from just one a year ago. Prime prices across 46 cities increased at an average rate of 8.2 per cent in the year to June 2021, up from 4.6 per cent in March.

The average annual increase in prime prices was 16 per cent across the six North American cities tracked by the index. According to the report, 22 per cent of the global cities registered flat or decline in price growth, while Toronto recorded the strongest performing world region in the year to Q2 2021 with 27 per cent, Bangkok was the weakest performing market with (-) 6.4 per cent.

Some of the world’s top Asian cities were Shanghai (21 per cent), Guangzhou (20 per cent) and Seoul (20 per cent).

Knight Frank India Chairman and Managing Director Shishir Baijal said: “Despite the on-going Covid-19 pandemic situation, the residential segments globally have outperformed when compared to the corresponding period of Q2 2020. This can be attributed to a strong buyer appetite for residential due to extended time spent indoors, appreciation for larger homes and low-interest rates regime followed by central banks globally.”

“An easing of travel rules in some markets, a surge in safe-haven purchases by domestic buyers, stamp duty holidays, and an overall reassessment of lifestyles has helped the prime segment recover quickly from the pandemic impact and record strong growth. Prime property prices in India are yet to catch-up with this global trend.”

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