Delhi among fastest growing mkt globally for luxury residential real estate

Representative image
National capital New Delhi has emerged as the 10th fastest growing city globally for luxury residential real estate with a rise of 4.4 per cent in capital value over the past one year, says the latest report by Knight Frank. Bengaluru with a rise of 2.8 per cent in capital value year-on-year and Mumbai (up 0.8 per cent) are ranked 15th and 30th, respectively in the 46 cities tracked by Knight Frank globally. 

“New Delhi, by virtue of limited supply of luxury properties saw a rise in weighted average of capital values at Rs 33,511 per square feet – an annual rise of 4.4 per cent. Bengaluru recorded a weighted average capital value of approximately Rs 19,000 per square feet. recording an annual increase of 2.8 per cent. Mumbai saw a weighted average capital value for prime properties at Rs 64,764 per square feet,” the report says.

Berlin with a growth of 12.7 per cent and Frankfurt with a rise of 12 per cent in capital value over the past one year top the table. Though Berlin leads the index, its rate of annual growth has slowed from 14.1 per cent in March 2019 to 12.7 per cent in June 2019. Frankfurt, by comparison, has seen its annual price growth increase from 9.6 per cent to 12 per cent over the same period. 

“With prime prices in Berlin and Frankfurt currently around €11,500 per square metre and €13,500 per square metre respectively they remain competitive by European standards,” says the Prime Global Cities Index report by Knight Frank for the second quarter of 2019 (Q2-2019).

The Prime Global Cities Index, which tracks the movement in luxury residential prices across 46 cities, rose 1.4 per cent in the year-to-June 2019, up marginally from 1.3 per cent in March 2019 but still significantly lower than its four-year average of 3.8 per cent, the report’s findings suggest.

35 of the 46 cities tracked by the index registered price growth in the year to June 2019. Of the eleven that saw prices decline year-on-year, Istanbul (-9.9 per cent) and Vancouver (-13.6 per cent) were the weakest markets, the Knight Frank report says.

The road ahead for the luxury residential real estate, according to Knight Frank, remains challenging as policy-makers grapple with a slowdown in economic growth and resort to cutting interest rates.

“Much hinges on the next three months with stronger headwinds on the horizon we expect the Prime Global Cities Index to moderate further in the second half of 2019 before strengthening in 2020,” wrote Liam Bailey, global head of research in this co-authored report with Kate Everett-Allen, their international residential research head.


Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel