Mumbai, which saw the sixth-highest annual growth in prime residential property prices among global cities from April to June 2023, is projected to achieve the highest annual increase of 5 percent in 2024.
During the April-June period of 2023, prime residential prices in Mumbai surged by 5.2 percent year-on-year (YoY). Bengaluru secured the 20th spot with a 3.6 percent YoY increase in Q2 2023, while New Delhi stood at 26th place with a 0.2 percent YoY rise. These findings are from Knight Frank's report titled 'Prime Global Cities Index Q2 2023'.
Dubai maintained its position at the top globally for eight consecutive quarters, with prime residential property values soaring by 48.8 percent YoY. The report noted an average annual growth rate of 1.5 percent across the covered markets, signaling a positive shift after a period of uncertainty. Following Dubai, Tokyo experienced a 26.2 percent increase, Manila 19.9 percent, Miami 7.5 percent, and Shanghai 6.7 percent growth from April to June 2023.
The Prime Global Cities Index monitors prime residential price movements in 46 cities worldwide using valuation-based metrics. The index monitors prices stated in local currencies. Knight Frank predicted that Mumbai and Auckland would lead in the highest change in prime residential prices, both expected to rise by 5 percent in 2024. The city's relative value, improving GDP figures, and infrastructure investments are cited as primary factors driving luxury housing prices upwards in Mumbai.
Across the 26 global prime residential markets, the average price is anticipated to grow by 2 percent in 2024.
Shishir Baijal, Chairman and MD at Knight Frank India, remarked, "In a year dominated by sluggish global growth and inflation concerns, the Indian economy emerged as a standout performer." Despite major central banks worldwide announcing unprecedented policy rate hikes, the Indian economy showcased robust growth momentum and effective inflation control, maintaining policy interest rate stability in the past two quarters.
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