Prime housing property prices: How Indian cities fare

New Delhi slipped by two positions to rank 39th globally in terms of price appreciation of prime residential properties during the September quarter, according to Knight Frank.

Mumbai ranked 40th, same as the June quarter, while Bengaluru moved up one spot to 42nd rank.

New Delhi stood at the 37th rank, while Mumbai and Bengaluru were at 40th and 43rd positions, respectively, during the second quarter of 2021 calendar year.

In its 'Prime Global Cities Index Q3 2021' report, Knight Frank tracked the movement in prime residential prices in local currency across 45-plus cities worldwide.

Prime residential property is defined as the most desirable and most expensive property in a given location, generally defined as the top 5 per cent of each market by value.

Miami leads the index for the first time since 2007 recording 26.4 per cent rise in the year to Q3 2021, while Jakarta was the weakest performing market (46th rank) with a decline of 4.2 per cent.

Housing prices in Delhi remained stable during the July-September quarter as against the year-ago period. In Mumbai, the prices fell 0.1 per cent.

The Prime Global Cities Index, an unweighted price index of prime residential prices across 45-plus cities, increased by 9.5 per cent in the year to Q3 2021 compared to 8.2 per cent in the year to Q2 2021.

Shishir Baijal, chairman and managing director, 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, he noted.

As developers and other industry stakeholders hold a positive sentiment, the segment is expect to record improved levels of activity, Baijal added.