Demand for luxury residences in Mumbai set to rise in 2021; prices to remain flat: Report

MUMBAI: In Mumbai, the demand for luxury residences is expected to increase in 2021, however, the property price is expected to witness a flat annual price change irrespective of the buoyancy in demand for the prime properties, said property consultant Knight Frank.

Property Prices of prime residential properties in the top 22 global cities are expected to remain the same in 2020. Furthermore, according to Knight Frank’s Prime Global Forecast 2021report, prices are expected to increase by 2% in 2021.

It indicates 20 of the 22 cities to witness prices remain flat or increase in 2021. It is a slight difference from the trend seen in 2020, where analysts expect nine cities to end the year with lower prices.

Furthermore, CMD, Knight Frank India said “With the modest price correction in the Indian real estate sector, post-lockdown, the luxury market has seen significant traction. Buyers are responding favorably to residential purchase across segments including luxury as sale prices have corrected in the last few quarters making an investment in property attractive. It is also not surprising that those markets that are already witnessing an economic rebound have moved higher in the rankings in this quarter”.

In the quarter ending September, Delhi’s prime residential market performed better than Mumbai and Bengaluru. With a sequential price decline of 0.1%, the city ranked 27th globally with a 0.2% annual price change.

Mumbai is on the 33rd rank with a 1.3% annual price decline until the end of the third quarter.  Mumbai has also witnessed a sequential decline of 0.7% price change. Bengaluru also ranked 34th with an annual price decline of 1.4% for the period with a 1.5% sequential price decline in the third quarter.

For 2021 Shanghai and Cape Town lead the forecast with annual price growth of 5% forecast in 2021. On the other hand, Buenos Aires is expected to be the weakest-performing global city, with prime residential prices falling by 8.0% during the period.