Mumbai ranks 24th in luxury homes price rise globally

New Delhi: Mumbai ranked 24th among 41 cities globally with 1.1 percent price rise of luxury homes for the year ended March 2017, property consultant Knight Frank India said on Tuesday.

Guangzhou in China was first in the global list of 41 cities with 36.2 percent price growth, according to 'Q1 2017 Knight Frank Prime Global Cities Index'.

The index tracks the movement of luxury residential property prices across 41 cities.

Delhi (ranked 35) and Bengaluru (ranked 29) were the two other Indian cities that figured in the global list. Both the cities saw negative price growth for the year ended March.

"Luxury homes in Mumbai recorded 1.1 percent price growth making it the only Indian city holding on to positive territory," Knight Frank said in a statement.

However, the price growth for prime housing properties in Mumbai has been on a declining trend.

"Delhi and Bengaluru, the other two Indian cities, on the global list saw a negative growth of -2.6 percent and -0.2 percent, respectively," it added.

Chinese cities of Guangzhou, Beijing and Shanghai topped the index with an average price growth of 26.3 percent.

Knight Frank India Chief Economist and National Director Samantak Das said that luxury housing segment was probably still recovering from the demonetisation decision.

He said the national capital has seen negative growth of almost 3 percent in the quarter-ending March as against a year-on-year price growth of 3 percent until two years back.

Bengaluru recorded negative growth for the first time in five years, he said. In 2015, the city saw a y-o-y growth of 13.6 percent.

Globally, financial hubs such as Zurich (-7 percent), London (-6.4 percent) and Milan (-0.9 percent) have recorded negative growth.

"Mumbai did better than many global financial centres but the price growth in the quarter-ending March 2017 has taken it back to Q1 2013 levels after touching a high of 3.2 percent price growth in 2015," Das said.

Emerging technology hubs such as Seoul (17.6 percent), Stockholm (10.7 percent), Berlin (8.7 percent) and Melbourne (8.6 percent) outshined established global financial centres, the report said.