Representational image. Photo Courtesy: Michael Niessl/Unsplash
Representational image. Photo Courtesy: Michael Niessl/Unsplash
International property consultancy Knight Frank India recently released a report called ‘Prime Global Cities Index Q2 2020 Report’, to highlight the prime luxury residential markets in the world, in terms of annual price appreciation.
Prime residential property is defined as the most desirable and most expensive property in a given location. Generally, it is defined as the top five of each market. The said Index is a valuation-based index that tracks the movement in prime residential prices in local currency across 45 cities worldwide, using the data from Knight Frank’s global research network.
Home turf
According to the report, Bengaluru is the 26th fastest growing Indian prime residential market in the world, in terms of annual price appreciation. The premium micro-markets of the city recorded a rise of 0.60 per cent in annual capital value change in Q2 2020, to an average price of Rs 19,727 per sq. ft.
New Delhi ranked 27th on the global index, with a 0.30 per cent rise in terms of annual capital value change in the prime residential market to an average price of Rs 33,625 per sq. ft. in Q2 2020.
Mumbai’s prime residential market, which is usually considered a safe haven for property investors, ranked 32nd in the Q2 2020, registering a decline of 0.60 per cent, with an average price of Rs64,388 per sq. ft.
When compared with the previous report of Q1, 2020, Bengaluru and Mumbai moved up by one position each; and Delhi leapt by five places.
Shishir Baijal, Chairman & Managing Director at Knight Frank India thinks that the pandemic-infused economic stress has engulfed the global markets with a fear of uncertainty and that the ultra-rich buyers around the world are deferring the high-premium purchase of a prime residential asset class and investing in liquid assets, primarily gold and cash equivalents.
Read: This opulent, 11,500-sq-ft heritage villa in Delhi oozes royalty
“With the expected price correction and an uptick in sentiment depending on the news related to vaccine discovery, buyers with adequate liquidity will find value to enter the prime residential asset class in India,” said Baijal.

Prime Global Cities Index Q2 2020 Report’

International scene
As per the report, 20 cities witnessed a decline in prime residential prices in Q2 2020. Nine of these are in Europe, seven in Asia, two in Australasia, one in the Middle East and one in Africa.
67 per cent of the global cities registered flat or positive yearly price growth and Australasia recorded the strongest performing world region in Q2 2020. Asian prime residential prices declined by 0.2 per cent..
Philippines’ capital city Manila leads the index with prime home prices rising by 14.4 per cent over the 12 months to June 2020, followed by Tokyo (8.60 per cent) and Stockholm (4.40 per cent). Bangkok was the weakest-performing global city in the year until June 2020, with home prices falling by 5.8 per cent.
The Knight Frank Prime Global Cities Index Q2 2020 (ranked by annual % change)
Rank
City
World Regions
12-month
3-month
% change
% change
(Q2 2019-Q2 2020)
(Q1 2020-Q2 2020)
1
Manila
Asia
14.10%
0.00%
2
Tokyo
Asia
8.60%
-0.30%
3
Stockholm
Europe
4.40%
-3.30%
4
Moscow
Russia & CIS
4.10%
1.80%
5
Geneva
Europe
4.10%
1.50%
6
Seoul
Asia
4.00%
0.00%
7
Paris
Europe
3.60%
-1.20%
8
Vancouver
North America
3.50%
3.20%
9
Miami
North America
3.50%
0.40%
10
Gold Coast
Australasia
3.40%
1.20%
26
Bengaluru 
Asia
0.60%
0.00%
27
Delhi
Asia
0.30%
0.00%
32
Mumbai
Asia
-0.60%
-0.50%
45
Bangkok
Asia
-5.8%
-1 .40%
Source: Knight Frank Global
Read: This luxury house in Gurugram is a traveller’s heaven

 

 

 

 

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