- Mumbai remained the most expensive prime property market with a price increase of 5.1% in the period 2014-18
- Bengaluru market remained stable during 2016-18 post witnessing a surge in price by 5% in 2015
Mumbai, June 13, 2019: According to Knight Frank’s The Wealth Report- Insight Series 2019, Hong Kong remained the most expensive prime residential city market in the world, with an average prime property price of US$4,251 per sq.ft. in 2018.The report focuses on the evolution of pricing in the prime market segment across a range of global cities.
London and New York remain dominant ultra-prime markets taking second and third place in the Knight Frank rankings with average prime prices currently standing at US$3,022 and US$2,989 per sq.ft. respectively. What is surprising about the London market however is that despite prime prices falling by 7% between 2015 and 2017, a record sale of US$15,184 per sq.ft. was achieved in 2017, 35% above the top price ever achieved in New York back in 2015.
Mumbai remained the most expensive prime residential city market in India, with prime property price seen atUS$931per sq.ft. (INR 64,649 per sq.ft.) in Q1 2019; this has seen a price increment of 0.3% when compared to average prime property price of the year 2018 approximately US$926.14 per sq.ft.(INR 64,432 per sq.ft.).
Delhi saw the highest price increment of 4.4% in Q1 2019 in comparison with average prime property price of the year 2018. According to Q1 2019, prime property price of Delhi was seen atUS$482.53 per sq.ft.(INR 33,507 per sq.ft.). Delhi saw a drop in average prime property price by 4.9% in 2016 and by another 2.3% in 2017; witnessing a surge in 2018 by 1.4%.
Bengaluru witnessed 0.8% rise with average prime property price of 2018 atUS$277.36 per sq.ft.(INR 19,296 per sq.ft.). According to Q1 2019, prime property price of Bengaluru was seen at US$280.48 per sq.ft.(INR 19,447 per sq.ft.).
Shishir Baijal, Chairman & Managing Director, Knight Frank India, “The prime property market in India has seen either a stable or marginal drop in prices in the last 5 years. The second half of CY2019 may see a marginal increase in property prices across all categories, including luxury. According to Attitude Survey, 14% of Indian ultra-high net-worth individuals are expected to buy a new home in 2019, an indication of latent demand for prime property in 2019.”
The average prime property price for the period 2014-2018:
Source: Knight Frank Research
Liam Bailey, global head of research at Knight Frank commented, “The impetus behind my exuberant forecast was research from The Wealth Report. Year-on-year, it was becoming increasingly clear just how much the growth of globalised wealth was shaping global property markets and propelling demand for the very best assets at new levels.”
In the Wealth Report Insight Series, ten prominent island destinations are identified for three world regions: Europe, the Americas and Asia-Pacific. Although traffic increased to all island groups, this was largely driven by an 80% increase in traffic to islands in Asia-Pacific in 2018.The Philippines alone saw an annual increase of 158% with 1,632 arrivals in 2018 compared with 632 in 2017. Bora Bora and Koh Samui also saw their private jet arrivals double in 2018.
Other key highlights (Source: Knight Frank Wealth Report 2019):
- No. of Private Jet departures from Mumbai in 2018 were approximately 1,516 approximately 8.28% higher than Dubai (1,400) and approx.20% higher than Tokyo (1,202)
- New York ranked no. 1 as it witnessed highest departure i.e. 66, 968 whereas Mumbai ranked no. 146
- North America (13,685) has highest number of active business jets.
- Europe, Russia and CIS (2,879) has second highest active business jets followed by Latin America (718), Asia-Pacific (487), Middle East (198) and Africa (135)
Corporate Comm India(CCI Newswire)