Decline in prices can be attributed to multiple factors, primarily the uncertainty around the second Covid wave
Bengaluru has slipped four positions to rank 40th globally in annual price appreciation of luxury residential properties, according to real estate consultant Knight Frank.
In its 'Prime Global Cities Index Q1 2021' report, Knight Frank mentioned that New Delhi and Mumbai, too, slipped one spot each to rank at 32nd and 36th, respectively.
In the last report, Delhi was at 31st position, while Mumbai ranked 35th and Bengaluru 36th.
Bengaluru witnessed a fall of 2.7 per cent year-on-year (YoY) in prime residential prices during January-March 2021, leading to a fall in its ranking on the global list.
In New Delhi, the prices fell marginally by 0.2 per cent YoY to an average price of Rs 33,572 per sq ft in Q1 2021.
Mumbai's prime residential market registered a decline of 1.5 per cent YoY in the January-March quarter with an average price of Rs 63,758 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+ cities worldwide.
Shenzhen ranked 1st with 18.9 per cent annual change for the period Q1 2020 – Q1 2021.
New York was the weakest performing market and ranked 46th with a fall of 5.8 per cent in prices annually.
Knight Frank India CMD Shishir Baijal said, "The decline in prices of prime residential properties in India during the first quarter of 2021 can be attributed to multiple factors such as uncertainty around the second wave of the pandemic, high liquidity in capital markets, as well as the backlog of supply."