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 Rs 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 Rs 19,200 per sq ft. Whereas Mumbai’s prime residential market registered a marginal decline of 1.1% with an average price of Rs 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%.