New Delhi ranks 9th in Knight Frank global index

Chennai: New Delhi is 9th fastest growing prime residential market in the world and has moved up one place from last year's ranking.

Knight Frank's Prime Global Cities Index has found average luxury home prices in areas such as Greater Kailash, Vasant Vihar, Anand Niketan, Defence Colony and Green Park rising by 4.4 per cent year-on-year in September quarter of 2019. The weighted average capital value of prime residential properties was Rs 33,511 per sq ft in Q3. With this, it moved up one place in the global ranking in terms of luxury home prices to 9th place.

Meanwhile, Mumbai moved up two places to 28th position and Bangalore slipped five places to 20th slot.

"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 & Managing Director, Knight Frank India.

"In India all the policy initiatives have been focused on boosting the development of affordable and mid-income housing, which has left the luxury property development a game for well-funded and organised firms to play," he added.

A prime residential property is defined as the most desirable and most expensive property in a given location, generally defined as the top five per cent of each market by value. The Prime Global Cities Index is a valuation-based index tracking the movement in prime residential prices in local currency across 45 cities worldwide.

Moscow led the index in September quarter with prime home prices rising by 11.1 per cent over the 12 months to September 2019, followed by Frankfurt 10.3 per cent and Taipei 8.9 per cent. Seoul was the weakest-performing global city in the year to September, with luxury home prices falling by 12.9 per cent.