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New Delhi's rank declined to 32nd among global cities in terms of prime residential properties.

Knight Frank, in its 'Prime Global Cities Index Q1 2021' report, also said that Bengaluru moved down four spots in the latest index at 40th rank in the first quarter of 2021. Against the 36th rank in Q4 2020, Bengaluru saw a decline of 2.7 per cent year-on-year (YoY) in prime residential prices, leading to the drop in its global position.

The premium micro-markets of the city recorded a fall of 0.6 per cent in annual capital value change in Q1 2021 to an average price of Rs 19,200 per square feet.

"New Delhi and Mumbai also move one spot down to 32nd and 36th rank, respectively, in Q1 2021 compared to 31st and 35th rank in Q4 2020," said a Knight Frank statement.

New Delhi, on the global index, remained unchanged in terms of annual capital value change in the prime residential market to an average price of Rs 33,572 per square feet in Q1 2021. Whereas Mumbai's prime residential market registered a decline of 0.1 per cent with an average price of Rs 63,758 per square feet.

Prime residential property is defined as the most desirable and most expensive property in a given location, generally defined as the top 5 per cent of each market by value. The Prime Global Cities Index is a valuation-based index tracking the movement in prime residential prices in local currency across over 45 cities worldwide using Knight Frank's global research network.

Shishir Baijal, Chairman and Managing Director at Knight Frank India, said: "The decline in prices of prime residential properties in India during the first quarter of 2021 can be attributed to multiple factors such as uncertainty around the second wave of the pandemic, high liquidity in capital markets, as well as the backlog of supply."

"Regardless, there is a propensity for consumption of prime residential properties in India as the country continues to inoculate its workforce to distance itself from the precariousness of future waves of the virus," he said.