Bengaluru Ranked 26th Prime Residential Market Globally
India’s start-up capital, Bangalore has beat Delhi and Mumbai to become the fastest growing luxury residential market in India and is in 26thposition globally.
In terms or annual price appreciation of luxury residential properties Bengaluru ranked globally at 26th position, according to a survey conducted by Knight Frank.
The most expensive and most desirable property in a particular location comes under a prime residential property. From an average price of Rs 19727 per square feet in Q2, it has been said that the premium micro-markets of the city recorded increment of 0.6 percent in annual capital value change. This was compared during April- June quarter to the same period last year.
Using the data from Knight Frank’s global research network, the valuation-based index tracked the movement in prime residential prices in local currency across 40+ cities worldwide. This is how the Knight Frank’s Prime Global Cities Index calculated.
According to Knight Frank Report, when it rose 0.3% in Delhi, it tracked the price movement in over 40 cities all over the world. The top most city is Manila, the Philippines capital, with prime home prices rising by 14.4%, which was followed by 8.6% by Japan’s Tokyo.
During the months of April-June this year, Mumbai’s capital value fell by 0.6% and it came at 32nd position. INR 64,388 per sq. ft. is Mumbai’s prime residential market according to the reports.
Mumbai and Bangalore moved up one place each; Delhi jumped five notches with a 0.30% rise in terms of annual capital value in the prime residential market to an average price of Rs 33,625 per sq. ft, when compared with the previous year reports of Q1, 2020.
There is an increase of 0.9% in the Prime Global Cities Index, which was an unweighted price index of prime residential prices across 45 cities. It was recorded as the lowest rate of annual growth in 11 years.
“The pandemic infused economic stress has engulfed the global markets with a fear of uncertainty”, said by Shishir Baijal, The Knight Frank India’s CMD.
He also added by saying that the ultra-rich buyers in the whole world were seen as deferring the high premium purchase of a prime residential assets class and preferring investments in liquid assets, primarily gold and cash equivalents. Depending on the news related to vaccine discovery, with the expected price correction and uptick in sentiment, buyers with adequate liquidity would find final value to enter the prime residential asset class in India.