Prices for upscale Mumbai homes rose the third fastest in the world on an annualised basis, according to the Prime Global Cities Index Q4 2023, a study by property consultancy Knight Frank India. In Q4 2022, the country's financial capital came in at the eighth spot with a yearly increase of 6.4 percent in prime residential prices compared to 10 percent in a year earlier.
On the other hand, Bengaluru's ranking dropped from 20th place in the fourth quarter of 2022 to 27th in the October to December period of 2023, even while the tech city recorded a 2.2 percent on-year growth in residential prices.
The National Capital Region (NCR), which encompasses Delhi and its environs, rose from 28th rank in Q4 2022 to 16th in Q4 2023 with a growth of 4.2 percent over the previous year.
Mumbai's 10 percent price growth in calendar year 2023 was driven primarily by wealthy buyers looking for a lifestyle upgrade against the backdrop of a strong economic environment which continues to gain momentum, Knight Frank India noted.
The rise in the global prime residential price index was recorded at 3.7 percent across the 45 markets covered in the study in the 12 months ended December 2023. This is the strongest growth rate recorded since the third quarter of 2022 with 82 percent of cities seeing growth on an annual basis, the report added.
Among the global cities, Manila secured first place with a 26.3 percent year-on-year change in residential prices. The Philippines capital’s performance is attributed to strong domestic and foreign investments.
Dubai ranked second with a 15.1 percent rise in prices, with Shanghai at fourth with an 8.6 percent change.
"The strong growth in prime prices is a reflection of the surge in demand seen in this residential segment across markets in India. With homebuyers increasingly prioritising lifestyle upgrades, bolstered by the nation's stable economic outlook and positive market sentiment, this segment should likely see price levels continue to elevate in the near term," said Shishir Baijal, chairman and managing director at Knight Frank India.
The Prime Global Cities Index is a valuation-based index tracking the movement of prime residential prices across 45 cities worldwide. The index tracks nominal prices in local currency.
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