Residential property prices in Mumbai
declined 9.1 per cent last fiscal, recording the first price fall since the 2008 global financial crisis, said a survey by consultancy firm Knight Frank.
On year-on-year basis, the prices of properties in prime global cities in the first quarter of 2012 fell 0.4 per cent.
"This represents the index's first quarterly fall since the depths of the global recession.
"Although a milestone, the index's negative quarterly growth is not surprising. Quarterly price growth has been below 2 per cent since Q1 of 2010 and it averaged only 0.6 per cent in 2011," Knight Frank Asia-Pacific research director Nicholas Holt said in the report.
Despite the overall index's sluggish performance, four markets -- Nairobi, Jakarta, Miami and London -- achieved double-digit growth during the period.
"Prices not only held up but actually increased slightly at the very top end of the Singapore market in Q1 of 2012.
This was not only due to fairly resilient domestic demand, but also due to wealthy Chinese, Indonesian and Indian buyers."
It seems unlikely that "we are on the cusp of a new deflationary cycle in luxury global house prices", he said.
"The safe-haven argument still resonates. Capital flight will continue to focus on cities with low political risk, transparent legal systems, good security and ideally those with a high networth individual-friendly tax regime," Holt added.