International property consultant Knight Frank, in its latest report Prime Global Cities Index, has ranked New Delhi as the 9thfastest growing prime residential market in the world, with average luxury home prices in areas such as Greater Kailash, Vasant Vihar, Anand Niketan, Defence Colony and Green Park rising by 4.4 per cent year-on-year in the third quarter of 2019 (Q3 2019). Bengaluru (2.1per cent) and Mumbai (0.8 per cent) were ranked 20thand 28thon the list, respectively.

While New Delhi and Mumbai have moved up by one and two places, respectively, from 10thand 30thranksin Q2 2019, Bengaluru has slipped five places from 15th rank in Q2 to 20th rank in Q3 2019. 

New Delhi saw a 4.4 per cent rise in weighted average capital value of prime residential properties to Rs33,511 per sq ft in Q3 2019, while Bengaluru, comprising areas such as Richmond Town, Frazer Town, Sanjay Nagar, Langford Town, Lavelle Road, Vittal Mallya Road, Palace Road, Kasturba Road, Seshadripuram, Richmond Road, MG Road, Ulsoor, Cunningham Road, Infantry Road, Benson Road and St. Johns Road, recorded a 2.1 per cent rise in capital value to about Rs 19,709 per sq ft.

Mumbai, comprising areas such as Cuffe Parade, Napean Sea Road, Colaba, Lower Parel, Worli, Tardeo, Juhu, Bandra Kurla Complex (BKC), Santacruz (W), Bandra (W), Khar (W) and Prabhadevi, registered a 0.8 per cent increase in average capital value to Rs 64,775 per sq ft.

(Ranked by annual % change)

Key findings for Q3 2019:

• Delhi moves up by one place to 9thrank, registering a 4.4 per cent YoY growth in prices• Mumbai moves up by two places to 28th rank, clocking a 0.8 per cent YoY rise in prices• Bengaluru slips five places to 20th rank, registering a 2.1 per cent YoY rise in prices• Moscow leads the index, with prime home prices rising by 11.1 per cent YoY• Seoul was the weakest-performing global city, with luxury home prices falling by 12.9 per cent YoY• Average growth of prime residential prices globally stands at 1.1 per cent YoY across 45 global cities• 76 per cent of cities registered static or rising prices over the 12-month period till September 2019
“While Delhi and Mumbai have moved up in their rankings, luxury home prices have remained stable in both the cities in the past three months. Delhi’s prime residential market, which is characterised by its tight supply, had witnessed a growth of 4.4 per cent in March 2019 quarter, leading to this performance in the Prime Global City Index. Slowing of global economic growth, along with issues like US-China trade relations, Hong Kong’s political tensions, a US presidential election in 2020 and the Brexit conundrum have influenced luxury buyers’ sentiment. Back in India as well, all the policy initiatives have been focused on boosting the development of affordable and mid-income housing, which has left the luxury property development a game for well-funded and organised firms to play,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India.