Apr. 15 – The Mumbai and New Delhi realty markets hold a significant level of promise for potential investors, says Knight Frank’s The Wealth Report 2010.
The report forecasts trends and identifies areas of growth in global prime residential property and wealth. Moreover, it provides insight to the attitudes of the wealthy towards property and other investment types. The report, conducted in cooperation with Citi Private Bank, looks at the answers from three major surveys conducted on the “Prime International Residential Index (PIRI),” “World’s Most Influential Cities’ survey and a unique survey on the “HNWI Attitudes to Property and Wealth.”
According to the PIRI survey the price growth in Mumbai was measured at 11 percent, although the proportion of mortgage debt to GDP remains at 6 to 8 percent. The Asia Pacific Region was named as one of the most popular markets for investment because of robust property growth from China and India.
The report forecasts that prime property prices in India will change by 12 to 15 percent. Although there are growing prime markets in every Indian city, south Mumbai and south New Delhi are still far ahead in terms of prices, with Bangalore, Chennai and Hyderabad being the nearest challengers, Anand Narayayan, head of residential sales for Knight Frank India, said in a statement.
After falling in 2008, the Delhi and Mumbai markets are expected to bounce back to peak levels this year because of easier access to credit.
When the market witnesses a boom, developers rush to supply the more profitable top-end of the market, although the biggest story is really the huge demand for affordable housing from middle-income families, says Pranab Datta, head of Knight Frank India. “We estimate that two million houses are needed by 2011, which gives a potential market of US$66 billion.”
The Wealth Report 2010 – A Global Perspective on Prime Residential Property and Wealth
Download the Knight Frank and Citi Private Bank here.
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