New Delhi has emerged as the 9th fastest growing city globally for luxury residential real estate with a rise of 4.4 per cent in capital values over the past one year, says the latest report by Knight Frank. While New Delhi and Mumbai have moved up by one and two places, respectively, from 10th and 30th ranks in the second quarter of 2019 (Q2-2019), Bengaluru has slipped five places from 15th spot in the second quarter of 2019 to the 20th place in the third quarter of 2019.
Knight Frank defines a prime residential property as the most desirable and most expensive property in a given location, generally defined as the top 5 per cent of each market by value. The index tracks movement in prime residential prices in local currency across 45 cities globally.
“In Delhi average luxury home prices in areas such as Greater Kailash, Vasant Vihar, Anand Niketan, Defence Colony and Green Park surged 4.4 per cent year-on-year (YoY) in the third quarter of 2019 (Q3-2019)," says the latest Knight Frank Prime Global Cities Index report.
New Delhi saw a 4.4 per cent rise in weighted average capital value of prime residential properties to Rs 33,511 per square feet (sq. ft.) in the third quarter of 2019, while Richmond Town, Frazer Town, Sanjay Nagar, Langford Town, Lavelle Road, Vittal Mallya Road, Palace Road, Kasturba Road, Seshadripuram, Richmond Road, M.G. Road, Ulsoor, Cunningham Road, Infantry Road, Benson Road and St. Johns Road in Bengaluru saw a 2.1 per cent rise in capital value to about Rs 19,709 per sq. ft. during this period, Knight Frank's findings suggest.
“While Delhi and Mumbai have moved up in their rankings, luxury home prices have remained stable in both the cities in the past three months. Delhi’s prime residential market, which is characterised by its tight supply, had witnessed a growth of 4.4 per cent in March 2019 quarter, leading to this performance in the Prime Global City Index,” said Shishir Baijal, chairman and managing director, Knight Frank India.
Mumbai, comprising areas such as Cuffe Parade, Napean Sea Road, Colaba, Lower Parel, Worli, Tardeo, Juhu, Bandra Kurla Complex (BKC), Santacruz (W), Bandra (W), Khar (W) and Prabhadevi, registered a 0.8 per cent increase in average capital value to Rs 64,775 per sq. ft.
Meanwhile, a recent report by ANAROCK Property Consultants suggests as many as 16,100 new units have been launched in the luxury segment priced over Rs 1.5 crore across the top seven cities in India in the first half of calendar year 2019 (CY19).
“Effectively, new luxury housing supply has more than tripled since the corresponding period in 2017 (period immediately after demonetisation). The first half of 2018, around 7,350 new units across top seven cities were launched. Mumbai Metropolitan Region (MMR) and the National Capital Region (NCR) dominated the new luxury supply in H1-2019, accounting for a 59 per cent overall share, followed Bangalore and Hyderabad seeing the launch of 2,210 and 2,070 units, respectively,” says Anuj Puri, chairman, ANAROCK Property Consultants.
The range of Rs 1.5 crore - Rs 2.5 crore saw the maximum launches with 9,940 units, while the remaining units were launched in the higher price bracket of over Rs 2.5 crore, data from ANAROCK shows.