Global luxury residential prices growth drops
International Property Consultant Knight Frank releases its Prime Global Cities Index that tracks the movement in luxury residential prices (top 5% of the housing market) across 45 cities globally. The index highlights that luxury residential prices have registered its lowest rate of annual growth since the final quarter of 2009. Two years ago, prime property prices were rising at an average rate of 4.3% per annum, which has now slowed to 1.3%.
The dip in the growth during the first quarter of 2019 is said to be attributed to the looming threat of a global trade war, uncertainty surrounding Brexit and the International Monetary Fund’s projection that 70% of world’s economies would see a slowdown in growth in 2019.
Key findings
“The Indian residential market has been stagnant for a considerable period of time with sales velocity, especially of prime property, remaining slow causing significant inventory overhang across major markets. Further, developers have also shifted their focus on higher traction segments of the market i.e affordable and mid-segments due to the concentrated demand and the conducive environment created for these segments on the back of policy reforms and sops. However, a growth in the prime property market across key Indian cities should be viewed as a positive sign and going forward we must track the progress for the next couple of quarters to ascertain that the sector 4is moving towards recovery .” said Shishir Baijal, Chairman & Managing Director, Knight Frank India
In regards to global cities, European cities continue to outperform with seven of the top 10 rankings this quarter occupied by European markets. Berlin (14%),Frankfurt (10%), Edinburgh (8%) and Paris (8%) are out in front. While, RUSSIA & CIS has come across as the strongest performing world region in the year to Q1 2019.
Tags : INTERNATIONAL