Mumbai clocks 2nd highest prime property price rise on global index in April-June: Report

Mumbai, with a price rise of 13% YoY in prime residences, recorded the second highest growth in prime residential prices in Q2

PGurus Newsdesk

August 23, 2024

Mumbai, with a price rise of 13% YoY in prime residences, recorded the second highest growth in prime residential prices in Q2

Mumbai sees major rise in prime residential property prices, secures second spot globally

According to Knight Frank‘s latest report, Mumbai has made a significant leap in the international real estate rankings, achieving the second-highest annual price growth for prime residential properties in the second quarter of 2024.

Key highlights

Mumbai: The city recorded a 13 percent year-on-year increase in prime residential prices. This remarkable growth pushed Mumbai up from its sixth position in Q2 2023 to second place in the global rankings for Q2 2024. The rise underscores the strong demand for high-end properties in the city.
New Delhi: The capital city saw a 10.6 percent increase in prime residential property prices year-on-year. This substantial rise dramatically improved its global ranking, moving from 26th place in Q2 2023 to third place in Q2 2024.
Bengaluru: The city experienced a more modest increase of 3.7 percent in prime residential prices. Despite this growth, Bengaluru’s ranking remained unchanged at 15th position in both Q2 2023 and Q2 2024.

The data highlights Mumbai’s and New Delhi’s robust performance in the global real estate market, driven by a surge in demand for premium residential properties.

“The premium segment has been the primary driver of sales growth across the Indian market, and this is reflected in the price growth seen during Q2 2024. The increasing affluence of the wealthy and their need for lifestyle-oriented properties has fueled the prime residential market,” said Shishir Baijal, Chairman and Managing Director at Knight Frank India.

“We expect this momentum to sustain in 2024, as the economic outlook continues to remain strong and keeps sentiments buoyant,” said Baijal.

Prime Global Cities Index Q2 2024: Key takeaways

The ‘Prime Global Cities Index Q2 2024’ is a valuation-based index tracking the movement of prime residential prices across 44 cities worldwide. The index tracks nominal prices in local currency.

Annual growth: The annual price growth across the 44 cities slowed from 4.1% in Q1 to 2.6% in Q2 2024. This figure remains below the long-term average of 5.3%.
Top performer: Manila led the index with a significant 26% annual rise in prime residential prices for Q2 2024.
Global rise: The global prime residential price index increased by 2.6% over the 12 months ending June 2024.

According to Liam Bailey, Knight Frank’s Global Head of Research, the biggest influence on future price growth lies in the hands of central banks and their confidence to cut rates further over the next 12 months.

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