Mum­bai among world’s top 20 ex­pen­sive cities

HT Estates - - FRONT PAGE - Bidya Sa­pam

MUM­BAI: Prices of prime res­i­den­tial prop­er­ties in In­dia’s top three cities ei­ther fell or saw mar­ginal growth in the last one year even as Mum­bai con­tin­ues to be among the world’s top 20 ex­pen­sive cities, ac­cord­ing to a re­port by prop­erty con­sul­tant Knight Frank.

Mum­bai ranked 16th among the world’s costli­est cities for the year 2018, down from the 15th spot in the pre­vi­ous year, the re­port re­leased by the global real es­tate con­sul­tant on Wed­nes­day said.

The rank­ings are based on af­ford­abil­ity of prime res­i­den­tial prop­er­ties in a par­tic­u­lar city. For in­stance, in Mum­bai around $1 mil­lion (Rs6.5 crore) can buy a prop­erty of about 92 square me­tres, while in Monaco, which tops the list of most ex­pen­sive cities, the same amount can buy 16 square me­tres of space, the re­port said.

The re­port pointed out, how­ever, that lux­ury prop­erty prices in New Delhi and Ben­galuru fell 2.3% and 2.4%, re­spec­tively, while those in Mum­bai saw a mar­ginal rise of 0.57% last year.

In­dian cities have dropped in the rank­ing of cities based on price move­ments of lux­ury res­i­den­tial prop­er­ties. “Slow­down in prime res­i­den­tial mar­kets has pulled down the top In­dian cities in the PIRI In­dex (or Prime In­ter­na­tional Res­i­den­tial In­dex),” the re­port said. While Mum­bai slipped to the 57th spot from 30th in the pre­vi­ous year, Ben­galuru ranked 84, down from 61. New Delhi was at the 83rd spot, up from 88th in the pre­vi­ous year.

Guangzhou, a city in China, tops the list with prop­erty prices ap­pre­ci­at­ing by 27.4% in the last one year.

Ac­cord­ing to the re­port, Mum­bais­tood47thon­theKnight Frank City Wealth In­dex among 314 global cities. The in­dex is drawn from four ma­jor indicators such as wealth, in­vest­ments, life­style and fu­ture in a par­tic­u­lar city. Delhi, Chen­nai and Ben­galuru fea­ture among the top 100 cities in the list.

“In­dia is one of the ma­jor driv­ers of ul­tra high net worth in­di­vid­ual (UHNWI) pop­u­la­tion growth in Asia, which is a bright spot in the global land­scape,” Sa­man­tak Das, chief econ­o­mist and na­tional di­rec­tor (re­search) Knight Frank In­dia.

I ndia wit­nessed a 54% in­crease in pop­u­la­tion of in­di­vid­u­als with a net worth of over $50 mil­lion be­tween 2012 and 2017. It is likely to see a growth of 71% in the next five years.

At the end of 2017, In­dia had around2,920 UHNWIs. Thenum­ber is likely to touch 4,980 by 2022.

“How­ever, the in­cli­na­tion to in­vest in prop­erty is lower for the ul­tra-wealthy In­di­ans com­pared to their global peers. Only 23% wealthy In­di­ans are in­ter­ested to in­vest in prop­erty (ex­clud­ing a pri­mary res­i­dence and sec­ondary home) in In­dia com­pared to 43% glob­ally,” Das said.


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