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Luxury homes in Mumbai recorded 1.1 per cent price growth during the January-March 2017 quarter, making it the only Indian city holding on to positive territory, said a survey by property consultant Knight Frank.
The survey, titled 'Prime Global Cities Index', revealed that the price growth for prime residential properties in Mumbai, which ranked 24th among 41 global cities, has been on a declining trend.
Delhi and Bengaluru, the other two Indian cities on the global list, saw negative growth of 2.6 per cent and 0.2 per cent, respectively, during the period.
"Luxury home markets at major Indian metros were probably still recovering from the short-term shocks of the demonetisation last year," Knight Frank India chief economist and national director Samantak Das said.
He said Mumbai is holding to a positive price growth albeit in a declining trend.
"Globally, financial hubs such as Zurich, London and Milan have recorded negative growth. Mumbai did better than many global financial centres but the price growth in the quarter-ending March 2017 has taken it back to Q1 2013 levels after touching a high of 3.2 per cent price growth in 2015," Das added.
He said from nearly a Y-o-Y price growth of 3 per cent until two years back, the prime residential market in Delhi has seen negative growth of almost similar measure in the quarter ended March 31, 2017.
Likewise, from a staggering Y-o-Y growth of 13.6 per cent in 2015, Bengaluru recorded negative growth for the first time in five years, the report stated.
Chinese cities of Guangzhou, Beijing and Shanghai topped the index with an average price growth of 26.3 per cent.
According to the report, the small base size and limited residential inventory could have catapult Guangzhou to the top of the table with a whopping price growth of 36.2 per cent. Shanghai also recorded a healthy 19.8 per cent surge on the price card.
Emerging tech hubs such as Seoul (17.6 per cent), Stockholm (10.7 per cent), Berlin (8.7 per cent) and Melbourne (8.6 per cent) surpassed established global financial centres but price growth in Bengaluru, India's IT capital, was not in sync with the global trend, the survey showed.
Property prices in the US also saw a steady surge but luxury home rates in Toronto (Canada) spiralled (22.2 per cent), almost three times of Vancouver (7.9 per cent).
Select Asian cities such as Hong Kong (5.3 per cent) and Singapore (4 per cent) fared better following years of ordinary performances.
Although prime rate in London fell by a sharp 6.4 per cent, the performance in the quarter ended March 31, 2017 indicates stabilisation, Knight Frank said.