In the third quarter of 2023, Mumbai's real estate market exhibited impressive growth in prime residential prices, ranking fourth globally for year-on-year price increases. According to the Knight Frank India report, Mumbai saw a substantial 6.5 percent surge in prime residential prices, catapulting it 18 places up from its 22nd position in the same quarter of 2022.
Mumbai secured the fourth position in the Q3 2023 Knight Frank Prime Global Cities Index, which focuses on the annual price growth of luxury homes in various cities. Delhi closely followed at the tenth spot within India's rankings, while Bengaluru held the 17th rank.
The Prime Global Cities Index, a valuation-based assessment of prime residential property prices in 46 cities worldwide, revealed that Mumbai experienced the fourth-highest year-on-year growth in prime residential prices during Q3 2023. With a notable 6.5 percent increase, the city significantly improved its ranking. New Delhi and Bengaluru also demonstrated positive movements in their index rankings.
In particular, the National Capital Region (NCR) made a remarkable leap from the 36th position in Q3 2022 to the 10th position in Q3 2023, showing a strong 4.1 percent year-on-year growth. Bengaluru also ascended from 27th to 17th place, with a 2.2 percent year-on-year growth, as per the Knight Frank India report.
The report underscores that the average annual increase in prime residential prices across the 46 markets reached 2.1 percent in the 12-month period ending in September 2023, marking the strongest growth rate since Q3 2022. Approximately 67 percent of the cities surveyed experienced annual growth.
Mumbai's robust performance can be attributed to a thriving upper-end market segment and a significant uptick in sales momentum, especially for higher-priced properties. Shishir Baijal, Chairman and Managing Director at Knight Frank India, points out that this trend, coupled with the growing desire among homebuyers to upgrade their lifestyles and the stable country's favorable economic outlook is anticipated to uphold price growth in the real estate market over the short to medium term.
On the global scale, Manila claimed the top spot in the ranking with a remarkable 21.2 percent annual increase in prices, thanks to strong domestic and foreign investments in the real estate market.
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