The Knight Frank Prime Global Cities Index Q2 2021 report cited that Mumbai and Bengaluru also moved down to 40th and 43rd rank in Q2 2021 compared to 36th and 40th rank in Q1 2021, respectively.
• Delhi ranked 37th with a -0.2% annual price change for Q2 2020 – Q2 2021. The city saw a flat 0.00% price change in Q2 2021 compared to the previous quarter.
• Mumbai ranked 40th with a -1.1% annual price change for the period Q2 2020 – Q2 2021. The city registered a marginal decline of 0.1% price change in Q2 2021 compared to the previous quarter.
• Bengaluru ranked 43rd with a -2.7% annual change for the period Q2 2020 – Q2 2021. The city saw a flat 0.0% price change in Q2 2021 compared to the previous quarter.
• The PGCI’s annual increase in the year to June 2021 (8.2%), highest rate of growth since 2008.
• 13 cities registered double-digit annual price growth in Q2 2021.
• Toronto tops with 27% highest rate of annual prime price growth in the year to June 2021.
• The average annual increase in prime prices was 16% across the six North American cities tracked by the index.
Knight Frank, a leading international property consultancy, in its ‘Prime Global Cities Index Q2 2021’ report cited that Delhi moved down five spots in the latest index at 37th rank in the second quarter of 2021. Delhi saw a marginal decline of 0.2% year-on-year (YoY) in prime residential prices, leading to the drop in global position from 32nd rank in Q1 2021 to 37th rank in Q2 2021. The premium micro-markets of the city remained unchanged on a QoQ basis in Q2 2021 to record an average price of INR 33,572 per sq ft.
Mumbai and Bengaluru also moved down to 40th and 43rd rank in Q2 2021 compared to 36th and 40th rank in Q1 2021, respectively. Bengaluru in the global index saw a decline of 2.7% in terms of annual capital value change in the prime resident market to an average price of INR 19,200 per sq ft. Whereas, Mumbai’s prime residential market registered a marginal decline of 1.1% with an average price of INR 63,697 per sq ft.
Prime residential property is defined as the most desirable and most expensive property in a given location, generally defined as the top 5% of each market by value. The Prime Global Cities Index is a valuation-based index tracking the movement in prime residential prices in local currency across 45+ cities worldwide using Knight Frank’s global research network.
According to Knight Frank’s research analysis, 35 cities witnessed a rise in prime residential prices in Q2 2021 (YoY). Around 13 cities registered double-digit priced growth up from just one a year ago. Prime prices across 46 cities increased at an average rate of 8.2% in the year to June 2021, up from 4.6% in March. The average annual increase in prime prices was 16% across the six North American cities tracked by the index. According to the report, 22% of the global cities registered flat or decline in price growth; while Toronto recorded the strongest performing world region in the year to Q2 2021 with 27%, Bangkok was the weakest performing market with -6.4%.
Some of the world’s top Asian cities, Shanghai (21%), Guangzhou (20%) and Seoul (20%).
THE KNIGHT FRANK PRIME GLOBAL CITIES INDEX Q2 2021 (RANKED BY ANNUAL % CHANGE)
Source: Knight Frank Global Research
Notes: ¹ Based on top-tier of mainstream market in metro area ² Based on all contracts above Yen100m 3 Provisional
While Delhi moved down by five places in Q2 2021; Mumbai and Bengaluru dipped four and three places in the same period.
|Cities||Rank (Q1 2020-Q1 2021)||Rank (Q2 2020-Q2 2021)|
Source: Knight Frank Research
Shishir Baijal, Chairman and Managing Director at Knight Frank India said “Despite the on-going COVID-19 pandemic situation, the residential segments globally have outperformed when compared to the corresponding period of Q2 2020. This can be attributed to a strong buyer appetite for residential due to extended time spent indoors, appreciation for larger homes and low-interest rates regime followed by central banks globally. An easing of travel rules in some markets, a surge in safe-haven purchases by domestic buyers, stamp duty holidays, and an overall reassessment of lifestyles has helped the prime segment recover quickly from the pandemic impact and record strong growth. Prime property prices in India are yet to catch-up with this global trend.”