Luxury Housing Becomes Costlier In Delhi and Bengaluru: Report
Amidst low sales volumes in the Indian real estate market, rates of luxury properties in India have grown. According to Knight Frank’s Prime Global Cities Index Q2 2019, the weighted average capital value of luxury properties in India's capital Delhi, increased by 4.4 per cent in the April-June quarter, over the corresponding period of the previous year, helping it occupy the 10th spot on the list. In this edition, the Prime Global Cities Index analysed the luxury market in 46 cities across various continents. On an average, values of luxury housing increased by 1.4 per cent in April-June quarter of 2019. Also, six of the top 10 cities were from Europe.
Increasing prices have also enabled Bengaluru (15th position) and Mumbai (30th spot) to be placed on this global index, which is topped by Berlin. In Bengaluru and Mumbai, prices appreciated by 2.8 per cent and 0.8 per cent, respectively. The prices of luxury property appreciated by 12.7 per cent in the past year in the German capital. The second and third positions on the index are occupied by Frankfurt and Moscow, where values increased by 12 per cent and 9.5 per cent, respectively.
Only 11 global markets witnessed a decline in the prices of luxury homes in the past year, with Vancouver and Istanbul at the bottom. Values also depreciated in New York, London and Dubai.
The cost of a luxury property in key Indian markets
To afford a sq ft of a luxury property in Delhi, a buyer will have to pay an average of Rs 33,511 in the national capital. At Rs 64,764 per sq ft, one would have to pay almost double the amount in Mumbai. In comparison, luxury properties are more affordable in Bengaluru, with the weighted average capital values currently standing at Rs 19,000 per sq ft.
Data available with Makaan.com shows that the average values of property have remained muted due to low sales volumes and rising housing inventory. Barring Hyderabad, property rates have remained almost unchanged, in most major markets of the country.