The global slowdown has impacted luxury residential prices which is at their lowest at 1.3 percent during the first quarter of 2019 from an average rate growth of 4.3 percent per annum earlier.
These figures were revealed by the Prime Global Cities Index of Knight Frank, an international property consultant.
The dip in the growth during the period is attributed to the looming threat of a global trade war, uncertainty surrounding Brexit and the International Monetary Fund’s (IMF) projection that 70 percent of the world’s economies would see a slowdown in 2019
Three Indian cities make the cut in the Index. Delhi ranks seventh as prime property price grew by 5.8 percent on 12-month and 4.4 percent on a 3-month basis. Bengaluru is at 20th position as it witnessed 2 percent growth on 12-month and 0.8 percent on three-month basis. Standing at the 31st rank, Mumbai registers a dismal growth by 0.6 percent on 12-month and 0.3 percent on a three-month basis, indicating momentum in the affordable and mid-segment housing category.
The Index tracks the movement in luxury residential prices (top 5 percent of the housing market) across 45 cities globally.
|2||Moscow||Russia & CIS||12.0%||3.6%|
“The Indian residential market has been stagnant for a considerable period of time with sales velocity, especially of prime property, remaining slow causing significant inventory overhang across major markets. Further, developers have also shifted their focus on higher traction segments of the market i.e., affordable and mid-segments due to the concentrated demand and the conducive environment created for these segments on the back of policy reforms and sops," said Shishir Baijal, Chairman & Managing Director, Knight Frank India.
"However, growth in the prime property market across key Indian cities should be viewed as a positive sign and going forward, we must track the progress for the next couple of quarters to ascertain that the sector is moving towards recovery,” he added.
In regard to the global cities, European cities continue to outperform with seven of the top 10 rankings this quarter occupied by European markets. Berlin (14 percent), Frankfurt (10 percent), Edinburgh (8 percent) and Paris (8 percent) are out in front, while Russia and CIS come across as the strongest performing world region in the year to Q1 2019.
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Updated Date: May 16, 2019 16:11:26 IST