Delhi slips 5 places on global cities index

Prices of prime residential properties in Delhi fell a marginal 0.2 per cent in the second quarter of 2021, leading to a drop of five spots — from 32 to 37 — in the Knight Frank's Prime Global Cities Index. The fall was on a year-on-year (YOY) basis. Mumbai moved down to the 40th rank in Q2 of 2021 compared to 36th Q1 2021, Knight Frank said.

Prices of prime residential properties in Delhi fell a marginal 0.2 per cent in the second quarter of 2021, leading to a drop of five spots — from 32 to 37 — in the Knight Frank's Prime Global Cities Index.

The fall was on a year-onyear (YOY) basis. Sequentially, the premium micro-markets of the city remained unchanged to record an average price of ~33,572 per sq ft, Knight Frank said.

Mumbai and Bengaluru also moved down to the 40th and and 43rd rank in Q2 of 2021 compared to 36th and 40th in Q1 2021, respectively. Bengaluru saw a decline of 2.7 per cent in terms of annual capital value change in the prime resident market to an average price of ~19,200 per sq. ft. Mumbai’s prime residential market registered a marginal decline of 1.1 per cent with an average price of ~63,697 per sq. ft.

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 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 on a YOY basis. Around 13 cities registered doubledigit 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, with 27 per cent. Bangkok was the weakest performing market with -6.4 per cent

Shishir Baijal, CMD at Knight Frank India, said: “Despite the ongoing pandemic situation, the residential segments globally have outperformed when compared to the 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 rate regime followed by central banks globally.”