The luxury home market in Mumbai witnessed 1.1 per cent price growth in Q1, according to Knight Frank Prime Global Cities Index survey. The survey, whoever added that the price growth although is in apositive territory, but has been on a declinign trend. The Knight Frank Prime Global Cities Index survey tracks properties prices every quarter.
Mumbai ranked 24th among 41 global cities in the survey. Delhi and Bengaluru the other two Indian cities on the global list saw negative growth of -2.6 per cent and -0.2 per cent respectively.
Chinese cities of Guangzhou, Beijing and Shanghai topped the index with an average price growth of 26.3 per cent. The small base size and limited residential inventory could have catapult Guangzhou to the top of the table with a whopping price growth of 36.2 per cent, the report added. Shanghai, often a cited as a model city for Mumbai also recorded a healthy 19.8 per cent surge on the price card.
The luxury home markets at major Indian metros were probably still recovering from the short-term shocks of the demonetisation last year.
Dr. Samantak Das, chief economist and national director, Knight Frank India said “From nearly a y-o-y price growth of 3 per cent until two years back the prime residential market in Delhi has seen negative growth of almost similar measure in the quarter-ending March 2017. Likewise from a staggering y-o-y growth of 13.6 per cent in 2015, Bengaluru recorded negative growth for the first time in five years.”
Unlike Mumbai, other financial hubs in the global list, Zurich (-7.0 per cent), London (-6.4 per cent) and Milan (-0.9 per cent) have recorded negative growth. “Mumbai did better than many global financial centres but the price growth in the quarter-ending March 2017 has taken it back to Q1 2013 levels after touching a high of 3.2% price growth in 2015,” said Das.
Emerging tech hubs such as Seoul (17.6 per cent), Stockholm (10.7 per cent), Berlin (8.7 per cent) and Melbourne (8.6 per cent) outshined established global financial centres the index shows but price growth in Bengaluru, India’s IT capital was not in sync with the global trend. Property prices in the US also saw a steady surge but luxury home rates in Toronto spiraled (22.2 per cent) almost three times of Vancouver (7.9 per cent).
Select Asian cities such as Hong Kong (5.3 per cent) and Singapore (4 per cent) fared better following years of ordinary performances. Although prime rate in London fell by a sharp 6.4 per cent, the performance in in the quarter ending March 2017 indicates stabilisation.