Note ban effect? Delhi sees biggest drop in luxury home prices

Prices of luxury homes in New Delhi and Bengaluru declined by 3.1 per cent and 0.8 per cent, respectively, but rose marginally in Mumbai by 0.6 per cent in the year to September 2017, according to Knight Frank India.

"The declining trend that engulfed luxury home prices across key Indian metros earlier this year has further intensified amid a global pattern of weakening prices," Knight Frank said in a statement.

Knight Frank Prime Global Cities Index Q3 2017, which tracks the movement in luxury residential prices across 41 international cities every quarter, rose by 4.2 per cent in the year to September 2017.

However, at least 19 of these cities saw a decline in annual growth, it added.

"While Delhi (-3.1%) and Bengaluru (-0.8%) recorded sharper negative growth, prices for luxury homes in Mumbai saw a marginal increase of 0.6% between September 2016 and September 2017, albeit on a declining trend," the statement said.

All the three metros featured on the price index slid from their positions in the previous quarter.

Delhi saw the biggest drop in rankings as it slipped from the 31st to the 36th position.

Samantak Das, Chief Economist and National Director

Research, said, "Prime residential markets have been under immense pressure particularly since the event of demonetisation. While the move had an adverse impact on the overall residential market, luxury homes sales were worst hit."

Guangzhou continued to top the index with a staggering 36.3 per cent price surge in luxury homes.