New Delhi moves down one spot in Global Prime Residential Index in Q3

The Prime Global Cities Index, based on the average price performance of 46 cities, surged by 9.5% in the year to September 2021, up from 8.3% in June.

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.

Prime prices in global cities continue to rise. With travel starting to normalise, the prospect of tighter monetary policy on the horizon, as well as higher taxes and cooling measures, evidence suggests prime markets had a busy third quarter, according to Knight Frank’s research analysis.

In fact, 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, based on the average price performance of 46 cities, surged by 9.5% in the year to September 2021, up from 8.3% in June.

According to the report, some 85% of cities saw prices rise on an annual basis, up from 76% last quarter and 16 cities (35%) saw prices increase by more than 10% during the 12-month period. While Miami leads the index this quarter for the first time since 2007 recording a 26.4% rise in the year to Q3 2021, Jakarta was the weakest performing market with a decline of – 4.2%.

In India, New Delhi moved down one spot in the index to rank 39 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 remains in the 39th position in Q3 2021, holding the same 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.

Commenting on the same, Shishir Baijal, Chairman and Managing Director at Knight Frank India, said, “As India’s economy recuperates from the impact of the pandemic and lockdown, the up-market segment of luxury homes is witnessing a surge in demand. The drivers for this demand are bottoming out of the prices across Indian cities along with various fiscal measures, which has made the overall environment very conducive for the residential sector. As developers and other industry stakeholders hold a positive sentiment, the segment is expect to record improved levels of activity.”

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.

Key Highlights:

# Mumbai, Delhi and Bengaluru’s prime residential market is witnessing price stability on QoQ basis.

# Delhi ranked 39th with stable price level for the period Q3 2020 – Q3 2021.

# Mumbai ranked 40th with a marginal -0.1% annual change for the period Q3 2020 – Q3 2021. Prime residential properties in the city registered a price appreciation of 0.2% in Q3 2021 compared to the previous quarter.

# Bengaluru ranked 42nd with a -1.1% annual price change for Q3 2020 – Q3 2021. The city witnessed no price change in Q3 2021 compared to the previous quarter.

# 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.

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