Prime residential prices across the top 22 cities globally are expected to remain static in 2020, before rising by 2% in 2021, according to Knight Frank’s ‘Prime Global Forecast 2021’. The report tracks the movement of prime prices across 45 cities globally.
The prime residential market of Mumbai, though expected to see a zero annual price change in 2021 (Dec.’20 — Dec. ’21), is likely to witness a buoyancy in demand for prime properties, the report said.
Shanghai and Cape Town lead the forecast for 2021, with an annual price growth of 5% forecast in 2021, whereas Buenos Aires is expected to be the weakest-performing global city, with prime residential prices falling 8% in the same year, the report said.
Knight Frank’s research analysis expects 20 of the 22 cities to see prices remain flat or increase in 2021, a slight reversal of the trend seen in 2020, where analysts expect nine cities to end the year with lower prices.
‘Luxury market moves’
“With the modest price correction in the Indian real estate sector, post-lockdown, the luxury market has seen significant traction,” Shishir Baijal, CMD, Knight Frank India, said.
“Buyers are responding favourably to residential purchase across segments including luxury as sale prices have corrected in the last few quarters making investment in property attractive. It is also not surprising that those markets that are already witnessing an economic rebound have moved higher in the rankings in this quarter. In this period of uncertainty, the Knight Frank Prime Global Cities Index still registers a prime price growth across the globe despite the pandemic,” he said.
In India, Delhi’s prime residential market performed better than Mumbai and Bengaluru. Globally, the city ranked 27th with a 0.2% annual price change for the period Q3 2019 – Q3 2020; with a decline of 0.1% price change in Q3 2020 compared to the previous quarter.
Mumbai ranked 33rd with -1.3% annual price change for the period Q3 2019 – Q3 2020. The city saw also saw a decline of 0.7% price change in Q3 2020 compared to Q2 2020.
Bengaluru ranked 34th with a decline of 1.4% annual price change for the period Q3 2019 – Q3 2020. The city registered a price decline of 1.5% in Q3 2020 compared to the previous quarter.
