The prime residential market of Mumbai is expected to see a price fall of 5 per cent this year and 3 per cent in 2021, according to the latest prime global residential forecast by property consultancy Knight Frank released on Tuesday.
The direction of travel for prime residential prices in 2020 and 2021 are based on projections for demand and supply, the impact of COVID-19 in the different markets and varying government stimulus measures announced.
"The scale of global economic uncertainty is unprecedented and therefore putting an exact figure on forecasts is challenging," said Knight Frank.
However, Lisbon, Monaco, Vienna and Shanghai are the only four global prime residential markets set to see price growth throughout the remainder of 2020 as the impact of COVID-19 takes its toll on luxury residential property markets around the world.
In the first quarter, Bengaluru's prime residential market performed better than Mumbai and Delhi. Globally, the city ranks 27th with 1.4 per cent annual price change for the period Q1 19 to Q1 20. It also witnessed 0.1 per cent price change in Q1 20 compared to the previous quarter.
Delhi ranks 32nd with 0.4 per cent annual price change for the period Q1 19 to Q1 20. The city saw a flat zero per cent price change in Q1 20 compared to the previous quarter.
Mumbai ranks 33rd with 0.1 per cent annual change for the period Q1 19 to 20. The city registered a price decline of minus 0.1 per cent in Q1 20 compared to the previous quarter.
Unsold inventory pressure coupled with tough economic environment reflected in a six-year low GDP growth rate in Q3 FY20 had strained prime residential market across key cities. The COVID-19 pandemic which started to reflect on market activities from mid-March this year has further aggravated the concerns of this segment.
"India's key markets will also be faced with the uncertainty mostly due to a significant erosion of confidence among buyers across the spectrum," said Shishir Baijal, Chairman and Managing Director at Knight Frank India.
"However, this also presents with a ray of hope for serious buyers with adequate liquidity to enter the real estate segment in India and across the world as values would be attractive," he said in a statement.
( With inputs from ANI )