According to the latest report by Knight Frank, Mumbai has secured the 6th position among 46 cities worldwide in terms of annual price growth for high-end residential properties, with a notable appreciation of 5.5 percent.
The renowned real estate consultancy, Knight Frank India, published their findings in the ‘Prime Global Cities Index Q1 2023’, revealing positive trends for Mumbai, Bengaluru, and New Delhi, with an increase in average annual prices during the period of January to March 2023.
The report highlighted Mumbai’s impressive ascent from the 38th rank in Q1 2022 to the 6th rank in Q1 2023, specifically attributed to the growth in high-end or prime properties. Bengaluru and New Delhi also experienced an upward shift in their index rankings, reaching the 16th and 22nd positions respectively, compared to their previous ranks of 37th and 39th in the first quarter of the calendar year 2022.
Knight Frank India further elaborated on the figures, noting that Mumbai recorded a 5.5 percent year-on-year (YoY) increase in average prices, while Bengaluru witnessed a 3 percent YoY rise, and New Delhi saw a 1.2 percent YoY growth, all compared to Q1 2022.
On a global scale, Dubai secured the top position with an impressive surge of 44.2 percent in the values of prime residential properties.
The Prime Global Cities Index serves as a valuation-based indicator, tracking the movement of prime residential prices across 46 cities worldwide. The index monitors nominal prices in local currencies.
The remarkable rise of Mumbai on the international index can largely be attributed to the surge in demand within the city, as stated by the consultancy.
While the demand remains robust across all segments, Knight Frank highlighted an increase in the sale of higher-value products.
CMD of Knight Frank India, Shishir Baijal, commented, “Despite concerns surrounding global growth and inflation that characterized most of 2022, the Indian economy showcased steady performance.”
Baijal further emphasized that the Indian real estate market demonstrated continued momentum in demand, even in the face of an inflationary environment and a steep rise in home loan rates over the past year.
“In particular, we have observed a consistent demand for prime residential properties due to three key factors: firstly, these consumers are less reliant on mortgage support; secondly, the sustained economic growth has led to increased income stability, and lastly, there is a prolonged trend of purchasing larger homes,” added Baijal.
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