Luxury residential prices register lowest growth since 2009: Study

Chennai: Global luxury residential prices registered the lowest growth at 1.3 per cent across 45 global cities, with Berlin topping the list at 14 per cent growth, followed by Frankfurt at 10 per cent, a report has said.

The Prime Global Cities Index by Knight Frank stated that Delhi ranks seventh where prime property prices recorded a growth of 5.8 per cent on a 12-month and 4.4 per cent on a three-month basis.

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 cent per annum, which has now slowed to 1.3 per cent, the report said.

It increased by 1.3 per cent in the year to the first quarter of 2019, its lowest annual rate of growth since the fourth quarter of 2009.

Bengaluru witnessed a growth of two per cent on a 12-month basis and 0.8 per cent on a three-month basis and took the 20th position on the index.

Mumbai came in at 31st place, registering 0.6 per cent growth on a 12-month basis. This indicates a momentum-shift in the affordable and mid-segment housing category, the index said.

With regards to global cities besides the top three – Berlin, Frankfurt and Edinburgh, Russia and CIS also emerged as the strongest performing region in the first quarter.

“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 overhand across major markets. Further, developers have also shifted their focus on higher traction segments of the market which is affordable and mid segment due to concentrated demand and the conducive environment created for these segments on the back of policy reforms and sops,” said chairman and MD, Knight Frank India, Shishir Baijal.

NT Bureau