BENGALURU: Despite a plunge in demand for residential real estate in India, the prime properties in metros like Bengaluru and Delhi have seen their prices escalate in the Q2, 2020 ( April-June quarter), according to a report by property consultants, Knight Frank.
The survey found that Bengaluru (26th), Delhi (27th) and Mumbai (32nd) have figured in the prime residential markets globally. For Bengaluru, the premium micro-markets of the city recorded a rise of 0.60 per cent in annual capital value change in Q2 2020 to an average price of `19,727 per sq. ft whereas in Delhi, there was a 0.3 per cent rise annual capital value change to `33,625 per sq. ft on an average.
For Mumbai however, which ranked 32nd on the prime global cities index , the prime properties saw a 0.6 per cent decline with an average price of `64,388 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 five per cent of each market by value.But the ultra rich across the globe are treading the path carefully and deferring their plans to invest n real-estate, pointed out Shishir Baijal, Chairman and Managing Director at Knight Frank India.
“The pandemic-infused economic stress has engulfed the global markets with a fear of uncertainty. Ultra-rich buyers around the world are seen deferring the high premium purchase of a prime residential asset class and preferring investments in liquid assets, primarily gold and cash equivalents.With the expected price correction and uptick in sentiment depending on news related to vaccine, buyers with adequate liquidity will find value to enter the prime residential asset class,” Baijal added.