Bengaluru ranked 26th prime residential market globally

Bengaluru was ranked 26th globally in annual price appreciation of prime residential properties, with the capital value increasing 0.6% to an average price of Rs 19,727 per sq ft in the city during the April-June quarter as compared to the same period last year.

This was followed by Delhi, where it rose 0.3%, according to Knight Frank report, which tracked the price movement in over 40 cities worldwide. The Philippines' capital Manila was the topmost at the ladder with prime home prices rising by 14.4%, followed by Japan's Tokyo at 8.6%.

Prime residential property is the most desirable and most expensive property in a given location, generally defined as the top 5% of each market by value.

Knight Frank’s Prime Global Cities Index is a valuation-based index tracking the movement in prime residential prices in local currency across 40+ cities worldwide, using data from Knight Frank's global research network.

Mumbai, where the capital value fell 0.6% during April-June this year, came at 32nd position.

While Bengaluru and Mumbai moved up one place each, Delhi, 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, jumped five notches as compared with the previous report of Q1, 2020.

Mumbai's prime residential market had an average price of Rs 64,388 per sq ft, the report said.

The Prime Global Cities Index, an unweighted price index of prime residential prices across 45 cities, increased by 0.9%, recording the lowest rate of annual growth in 11 years.

Thailand's capital Bangkok was the weakest-performing global city in the year till June 2020, with luxury home prices falling by 5.8%, the report said.

Knight Frank India CMD Shishir Baijal said, "The pandemic infused economic stress has engulfed the global markets with a fear of uncertainty.

"Ultra-rich buyers around the world are seen deferring the high premium purchase of a prime residential asset class and preferring investments in liquid assets, primarily gold and cash equivalents," said Baijal.

With the expected price correction and uptick in sentiment depending on the news related to vaccine discovery, buyers with adequate liquidity would find value to enter the prime residential asset class in India, he said.