22 March 2024 – According to the recent ‘Prime Global Cities Index Q4 2023‘ by Knight Frank, Mumbai, along with New Delhi and Bengaluru, experienced a surge in the average annual prices of prime residential properties. Mumbai particularly stood out with an impressive 10% price growth in the past year, driven by affluent homebuyers seeking lifestyle upgrades amidst a robust economic environment.
Mumbai’s prime residential prices witnessed a significant year-on-year growth of 10% in Q4 2023, propelling it to the 3rd position on the index, up from 8th place in Q4 2022. New Delhi climbed from the 28th rank in Q4 2022 to the 16th position in Q4 2023, registering a 4.2% year-on-year growth. Bengaluru, despite recording a 2.2% year-on-year growth in residential prices, observed a decline in ranking from 20th place in Q4 2022 to 27th rank in Q4 2023. Globally, the prime residential price index saw a 3.7% rise across 45 markets in the 12 months ending December 2023, marking the strongest growth rate since Q3 2022. Manila claimed the top spot in the index with a remarkable 26.3% annual rise in prices, followed by Dubai with a 15.1% year-on-year growth.
Shishir Baijal, Chairman and Managing Director at Knight Frank India, attributes the robust growth in prime prices to increased demand driven by lifestyle upgrades and positive market sentiment. Liam Bailey, Knight Frank’s Global Head of Research, highlights the impact of the rate tightening cycle on sales volumes, with prices ticking up due to supply constraints and anticipated rate cuts in the latter half of 2024.
