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

MUMBAI: The demand for luxury residences in Mumbai is expected to rise significantly in 2021, while prices are likely to see a flat annual price change despite the buoyancy in demand for the prime properties, said property consultant Knight Frank.

Prices of prime residential properties across the top 22 global cities, on average, are expected to remain static in 2020, before rising by 2% in 2021, Knight Frank’s Prime Global Forecast 2021 report said.

It expects 20 of the 22 cities to see prices remain flat or increase in 2021, a slight reversal of the trend seen in 2020, where analysts expect nine cities to end the year with lower prices.

“With the modest price correction in the Indian real estate sector, post-lockdown, the luxury market has seen significant traction. Buyers are responding favourably to residential purchase across segments including luxury as sale prices have corrected in the last few quarters making 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,” said Shishir Baijal, CMD, Knight Frank India.

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

Mumbai ranked 33rd with 1.3% annual price decline until the end of third quarter; the city also saw a sequential decline of 0.7% price change. Bengaluru property market ranked 34th with an annual price decline of 1.4% for the period with a 1.5% sequential price decline during the third quarter.

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

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