New Delhi is World’s 10th Fastest Growing Luxury Residential Market

According to a Knight Frank report, Delhi has ranked 10th globally in price movement of luxury housing properties. The capital region, by virtue of its limited supply of luxury properties, saw a 4.4 percent rise in weighted average of capital values, which were recorded at Rs 33,511 per square feet. However, New Delhi has slipped three places in the overall ranking during the quarter from 7th position in the first quarter to 10th position. Bengaluru, with a price rise of 2.8 percent and Mumbai at 0.8 percent increase, ranked on 15th and 30th position, respectively.

Prime Global Cities Index Report

The index tracks the movement in luxury residential prices across 46 cities globally. Luxury residential prices have overall registered an average increase of 1.4 percent in the year to June period. Berlin continues to lead the index, with its rate of annual growth at 12.7 percent in June 2019. Frankfurt with 12 percent price rise, stood second and Moscow slipped to third rank in the second quarter of 2019.

Commenting on the report’s findings, Shishir Baijal, Chairman and Managing Director, Knight Frank India, said that marginal increase in prices, along with poor buyer sentiment, suggests that the demand for luxury homes is likely to remain tepid. “Indian residential market continues to focus on affordable and mid-segments due to structural reforms supporting this segment. However, a growth in the prime property markets of Mumbai and Bengaluru could be viewed as a sign of stabilization,” he said.

Gurgaon, Key Luxury Residential Real Estate Market

More and more Indians are getting attracted to luxury and housing is no exception. That’s why developers are launching projects with world-class designs and amenities. These include apartments, penthouses, villas and bungalows in gated communities, besides branded residences and golf townships. Traditionally luxury meant prime location and good social infrastructure and amenities. Now, it is not limited to swimming pool and club in the society. Builders, in order to stand out in the market, are bringing in new technologies, impressive designs and latest architecture. They are also collaborating with internationally acclaimed architects and designers. Gurgaon as one of the key markets of Delhi NCR, is home to a number of big companies and their executives. This has fueled demand for luxury houses. The most sought-after destinations are Golf Course and Golf Course Extension roads. The upcoming destinations are New Gurgaon and Sohna road.

The road ahead for the luxury residential real estate, according to Knight Frank, remains challenging as policy-makers grapple with a slowdown in economic growth and resort to cutting interest rates. “Much hinges on the next three months with stronger headwinds on the horizon we expect the Prime Global Cities Index to moderate further in the second half of 2019 before strengthening in 2020,” wrote Liam Bailey, global head of research in this co-authored report with Kate Everett-Allen, their international residential research head.

 

Sources:

https://content.knightfrank.com/research/323/documents/en/prime-global-cities-index-q2-2019-6589.pdf

https://www.knightfrank.co.uk/research/article/details.aspx?article_id=8014a214-2ea8-43f0-9b74-e2124c5f1da1