New Delhi saw a marginal decline of 0.2 per cent year-on-year in prime residential prices, leading to the drop in global position from 32nd rank in Q1 to 37th rank in Q2, according to Knight Frank's prime global cities index Q2 2021.
The report released on Wednesday said premium micro-markets of the city remained unchanged on a QoQ basis in Q2 to record an average price of Rs 33,572 per square feet.
Mumbai and Bengaluru also moved down to 40th and 43rd rank in Q2 compared to 36th and 40th rank in Q1 2021 respectively.
Bengaluru in the global index saw a decline of 2.7 per cent in terms of annual capital value change in the prime resident market to an average price of Rs 19,200 per sq ft.
Mumbai's prime residential market registered a marginal decline of 1.1 per cent with an average price of Rs 63,697 per sq ft.
Prime residential property is defined as the most desirable and most expensive property in a given location, generally defined as the top 5 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-plus cities worldwide using Knight Frank's global research network.
According to Knight Frank's research analysis, 35 cities witnessed a rise in prime residential prices in Q2 2021. Around 13 cities registered double-digit priced growth up from just one a year ago.
Prime prices across 46 cities increased at an average rate of 8.2 per cent in the year to June, up from 4.6 per cent in March. The average annual increase in prime prices was 16 per cent across the six North American cities tracked by the index.
According to the report, 22 per cent of global cities registered flat or decline in price growth. While Toronto recorded the strongest performing world region in the year to Q2 with 27 per cent, Bangkok was the weakest performing market with 6.4 per cent.
Shishir Baijal, Chairman and Managing Director at Knight Frank India, said despite the on-going Covid-19 pandemic situation, residential segments globally have outperformed when compared to the corresponding period of Q2 2020.
"This can be attributed to a strong buyer appetite for residential due to extended time spent indoors, appreciation for larger homes and low-interest rates regime followed by central banks globally." Baijal said an easing of travel rules in some markets, a surge in safe-haven purchases by domestic buyers, stamp duty holidays and an overall reassessment of lifestyles has helped the prime segment recover quickly from the pandemic impact and record strong growth.
"Prime property prices in India are yet to catch up with this global trend," he added.
