New Delhi Ranks 38th & Mumbai 39th in Global Prime Residential Index
Knight Frank ‘Prime Global Cities Index Q3 2021’ report cited that New Delhi moves down one spot in the index to rank 38 in the third quarter of 2021. Bengaluru moved down one spot up against the previous quarter in the index, to rank 42, as the quarter registered a 1.1% YOY price fall in the prime markets. Prices remained stable in Q3 2021. Mumbai moved up to the 39th position in Q3 2021, against its 40th rank in the previous quarter, as prices fell marginally by 0.1% YOY. In case of Mumbai too, prices are higher 0.2% QoQ in Q3 2021. Prime residential property is defined as the most desirable and most expensive property in a given location, generally defined as the top 5% 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 45+ cities worldwide using Knight Frank’s global research network. According to Knight Frank’s research analysis, 39 cities witnessed a rise in prime residential prices between Q2 and Q3 – 2021. Fifteen cities registered double-digit priced growth. The Prime Global Cities Index, an unweighted price index of prime residential prices across 45+ cities, increased by 9.5% in the year to Q3 2021 compared to 8.2% in the year to Q2 2021. According to the report, 84% of the global cities registered positive yearly price growth; while Miami leads the index this quarter for the first time since 2007 recording 26.4% rise in the year to Q3 2021, Jakarta was the weakest performing market with a decline of - 4.2%. Canadian metropolises, Vancouver and Toronto prices softened in Q3 2021, compared to Q2 2021, as home buyers remain doubtful about the direction taken by the Government as it recently announced 2-year ban on foreign residents purchasing a home in Canada. The Evergrande crisis softened the prices of prime residential real estate in Shanghai, Beijing, Guangzhou and Shenzhen. Miami ranked 1st in Q3 2021 with 26.4% annual change for the period Q3 2020 – Q3 2021. The city registered an increase in prices by 8.1% in Q3 2021 compared to the previous quarter. The need for larger accommodation, coastal properties along with the Florida States new tax policy resulted in increased demand from the remote working generation. Jakarta ranked 46th with a -4.2% annual change for the period Q3 2020 – Q3 2021. The city registered a price decline of 4.0% in Q3 2021 compared to the previous quarter.
Tags : News/Views residential Knight Frank Home buyers New Delhi accommodation Global Prime Residential Index Prime Global Cities Index Coastal Properties