Luxury home prices in Mumbai witnessed 1.1 per cent growth in the first quarter of 2017, making it the only city in the country that saw an increase in the luxury category, global property consultant Knight Frank said in a report.
Mumbai ranked 24th among 41 global cities in the Knight Frank Prime Global Cities Index survey. Prices of luxury homes in Delhi and Bengaluru, the other two Indian cities on the global list, saw negative growth of -2.6 per cent and -0.2 per cent, respectively.
“Mumbai did better than many global financial centres but the price growth in the quarter-ending March 2017 has taken it back to Q1 2013 levels after touching a high of 3.2 per cent price growth in 2015,” said Samantak Das, chief economist and national director, Knight Frank India.
Das said the luxury home markets at major Indian metros were probably still recovering from the short-term shocks of demonetisation last year.
“From nearly a YOY (year-over-year) price growth of 3 per cent until two years back, the prime residential market in Delhi has seen a negative growth of almost similar measure in the quarter-ending March 2017. Likewise, from a staggering YOY growth of 13.6 per cent in 2015, Bengaluru recorded negative growth for the first time in five years,” said Das.
Chinese cities Guangzhou, Beijing and Shanghai topped the index with an average price growth of 26.3 per cent. Global financial hubs like Zurich (-7.0 per cent), London (-6.4 per cent) and Milan (-0.9 per cent) have recorded negative growth.
A small base size and limited residential inventory could have catapult Guangzhou to the top of the table with a whopping price growth of 36.2 per cent, the report said. Shanghai, often cited as a model city for Mumbai, also recorded a healthy 19.8 per cent surge on the price card.
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