Amid the COVID-19 pandemic, housing prices have registered an uptick even when the economy contracted for two consecutive quarters in the current financial year. The global prime residential pricing registered an increase of 1.9 per cent year-on-year (YoY), according to leading global property consultant - Knight Frank's Prime International Residential Index (PIRI 100). In 2020, the luxury housing markets performed better than anticipated, with 66 of the 100 markets featuring in the price index and recording annual price growth of two per cent. The index tracks the movements in luxury residential prices across the world's top residential markets.
According to a statement shared by Knight Frank, Delhi ranked 72nd globally in terms of luxury residential prices, which remained marginally lower at -0.1 per cent year-on-year in 2020. Mumbai ranked 77th and Bengaluru ranked 79th globally, registering a decline of 1.5 per cent and two per cent year-on-year, respectively in prime residential prices. In Mumbai, one can purchase 106 square metres of prime residential real estate, which is a 3.7 per cent increase, compared to 102 square meters in 2019.
“2020 has been a year that saw COVID-19 influenced slowdown not only in the real estate industry but overall, in the economy. The policy decisions by the Maharashtra and Karnataka Governments to reduce the stamp duty have acted as a counterbalance to the disruption caused by the pandemic,'' said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
''The luxury residential sales saw an exponential surge in Mumbai in Q4 2020 and the demand outlook for 2021 remains resilient. The current market price offers a premium value to make a luxury residential asset purchase in Indian cities for both domestic and global wealthy individuals,'' he added.