No Indian city in top 10 Prime Global Cities Index

New Delhi: Owing to year-on-year price fall, tier-1 cities such as Delhi and Bengaluru have moved one spot down on 'Prime Global Cities Index' in third quarter (Q3) of 2021. According to property consultant Knight Frank, the former city moved down to 38th rank while the latter to 42nd rank, as the quarter registered a 1.1 per cent y-o-y decline in the prime markets.

According to the latest report on the luxury property segment, city of Mumbai ranked 39, same rank in the previous quarter, as prices fell marginally by 0.1 per cent y-o-y. The prices are higher 0.2 per cent quarter-on-quarter in Q3 of 2021. The Prime Global Cities Index is a valuation-based index tracking the movement in prime residential prices in local currency across 45 cities worldwide.

Shishir Baijal, CMD of Knight Frank India said, "As India's economy recuperates from the impact of the pandemic and lockdown, the up-market segment of luxury homes is witnessing a surge in demand. The drivers for this demand are bottoming out of the prices across Indian cities along with various fiscal measures, which have made the overall environment very conducive for the sector."

"As developers and other industry stakeholders hold a positive sentiment, the residential segment is expected to record improved levels of activity," he says. The research analysis shows that 39 cities witnessed a rise in prime residential prices between second and third quarters of 2021. Fifteen cities registered double-digit growth.

On the global level, the report mentions that 84 per cent of the global cities registered positive yearly price growth; while Miami leads the index this quarter for the first time since 2007 recording 26.4 per cent rise in the year to Q3 of 2021, Jakarta was the weakest performing market with a decline of minus 4.2 per cent.

While cities of Seoul, Shangahi, Toronto and San Francisco retained top five positions respectively, none of the Indian cities made it to top 10 ranking on the list. The worst performing city for luxury property globally, is Jakarta which ranked 46. The city registered a price decline of 4 per cent in Q3 of 2021 compared to the previous quarter.