Annual average prime price growth stands at 1.3% across 45 global cities
International Property Consultant Knight Frank releases its Prime Global Cities Index that tracks the movement in luxury residential prices (top 5% of the housing market) across 45 cities globally. The index highlights that luxury residential prices have registered its lowest rate of annual growth since the final quarter of 2009. Two years ago, prime property prices were rising at an average rate of 4.3% per annum, which has now slowed to 1.3%.
The dip in the growth during the first quarter of 2019 is said to be attributed to the looming threat of a global trade war, uncertainty surrounding Brexit and the International Monetary Fund’s projection that 70% of world’s economies would see a slowdown in growth in 2019.
- The index increased by 1.3% in the year to Q1 2019, its lowest annual rate of growth since Q4 2009.
- Delhi secures a spot in top 10. Ranked at the 7th position, prime property price grows by 5.8% on 12-month and 4.4 % on 3-month basis
- City of Bengaluru witnesses a growth of 2% on 12-month and 0.8% on 3-month basis, stands at the 20th position on the Index
- Standing at the 31st rank, Mumbai registers a dismal growth by 0.6% on 12 month and 0.3% on 3-month basis, indicating a momentum in the affordable & mid-segment housing category.
“The Indian residential market has been stagnant for a considerable period of time with sales velocity, especially of prime property, remaining slow causing significant inventory overhang across major markets. Further, developers have also shifted their focus on higher traction segments of the market i.e affordable and mid-segments due to the concentrated demand and the conducive environment created for these segments on the back of policy reforms and sops. However, a growth in the prime property market across key Indian cities should be viewed as a positive sign and going forward we must track the progress for the next couple of quarters to ascertain that the sector 4is moving towards recovery .” said Shishir Baijal, Chairman & Managing Director, Knight Frank India
In regards to global cities, European cities continue to outperform with seven of the top 10 rankings this quarter occupied by European markets. Berlin (14%),Frankfurt (10%), Edinburgh (8%) and Paris (8%) are out in front. While, RUSSIA & CIS has come across as the strongest performing world region in the year to Q1 2019.