India’s prime residential market remains resilient in 2019: Knight Frank Wealth Report 2020

by Shrutee K/DNS
Prime property market in Delhi (+4.7%), Bengaluru (+2.1%),Mumbai(+0.5%) register annual growth
European and Asian cities dominate the top 10 best performing residential markets
Global prime markets register average price rise of 1.8% in 2019
USD 1 Million can now buy 9.0% more area in Delhi6.6% in Bengaluru and 3.2% in Mumbai as compared to 2015
Mumbai, March 5, 2020: Despite wealth growth and record low interest rates in most advanced economies, the global economic slowdown has weighed on prime property prices across the globe. This is according to Knight Frank’s Prime International Residential Index (PIRI 100), part of Wealth Report 2020, which tracks the movement of luxury residential prices in 100 cities and second home markets globally for the 12-months to the end of December 2019. And the survey reveals that –
Frankfurt and Lisbon top the PIRI list with an annual price change of 10.3% and 9.6%, respectively   
Seoul and Taipei are now the Asia’s frontrunners with annual growth of almost 8.9% and 7.6%, respectively.
Hong Kong (+2.9%) surprised on the upside in 2019, with a mortgage cap reduction and three interest rate reductions mitigating some of the impact of the political volatility.
Singapore (+1.2%) is firmly back in the spotlight.
Indian cities- Delhi registered 4.7% annual growth, followed by Bengaluru (2.1%) while Mumbai saw a tepid growth of 0.5%.
Victoria Garrett, Head of Residential, Asia Pacific,Knight Frank said “Supported by low-interest rates, prime residential markets in Asia Pacific were able to weather market volatility in 2019. In Seoul, a lack of prime residential supply within the city coupled with strong demand and easy access to credit has significantly bolstered the performance of its prime residential market. While in Taipei, prime residential prices were up similarly due to a lack of available supply and higher demand from cross-border investors seeking to diversify their risks.”
The PIRI 100
Luxury residential market performance, annual price change December 2018 to December 2019
All price changes are in local currency                                                                                                                                                
No.
Location
World Region
Annual % change
1
 Frankfurt
 Europe
10.3%
2
 Lisbon
 Europe
9.6%
3
 Taipei
 Asia
8.9%
4
 Seoul
 Asia
7.6%
5
 Houston
 North America
7.4%
6
 Athens
 Europe
7.0%
7
 Mexico City
 Latin America
6.6%
8 =
 Manila
 Asia
6.5%
8 =
 Berlin
 Europe
6.5%
10
 Guangzhou
 Asia
6.3%
16
Delhi
Asia
4.7%
45
Bengaluru
Asia
2.1%
68
Mumbai
Asia
0.5%
Source: Knight Frank India – The Wealth Report 2020
How much space can $1 million buy?
When it comes to luxury properties, Monaco remains the world’s most expensive city where US$1 million can buy you a mere 16.4 square metres of space. Comparatively in Mumbai, you can buy 102.2 square metres (approximate size of a decent two bedroom flat in the city)
Square metres of prime property $1m buys

2015
2019
Mumbai
99
102.2
Delhi
181
197
Bengaluru
315
336
Source: Knight Frank Research, Douglas Elliman, Ken Corporation
 How many square metres of prime property does US$1m* buy in key cities?
City
Area in square metres
 Monaco
16.4
 Hong Kong
21.3
 London
30.4
 New York
32.2
 Singapore
35.5
 Geneva
37.5
 Los Angeles
39.0
 Paris
44.6
 Sydney
50.4
 Shanghai
58.2
 Tokyo
64.7
 Beijing
67.9
 Berlin
77.5
 Miami
89.7
 Melbourne
95.6
 Mumbai
102.2
 Istanbul
115.1
 Dubai
154.7
 Cape Town
174.3
 Sao Paulo
202.3
*Exchange rates calculated at 31 December 2019 Source: Knight Frank Research002C Douglas Elliman, Ken Corporation
Shishir Baijal, Chairman & Managing Director, Knight Frank India, said, “While prime property prices have stayed stable in the past 5 years, the relative stability of the Indian Rupee still allows investors and end users to buy more prime real estate in India today, compared to 2015. At -1% for 2020, prime property price growth in Mumbai is expected to face challenges, as the current economic slowdown will continue to influence market liquidity.”

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