According to a recent report by Knight Frank, Mumbai and Auckland are anticipated to witness the most notable escalations in prime residential property prices in 2024. The analysis of Q2 2023 reveals that Mumbai’s residential real estate prices exhibited a robust YoY growth of 5.2 percent, securing the leading position, trailed by Bengaluru and New Delhi. The data from the “Prime Global Cities Index Q2 2023” indicates that Mumbai’s prime residential areas experienced a substantial increase of 5.2 percent in prices during Q2 CY2023 compared to the preceding year, marking it as the sixth-highest annual price growth globally.
Bengaluru and New Delhi secured the 20th and 26th ranks, respectively, with modest YoY price growth rates of 3.6 percent and 0.2 percent during Q2 2023, as outlined in the same report.
Dubai continued its global dominance, clinching the top spot for the eighth consecutive quarter with an impressive 48.8 percent YoY surge in prime residential property values. The cumulative average annual growth rate across the covered markets reached 1.5 percent, signifying a favorable shift after a period of uncertainty.
Knight Frank India’s Chairman and Managing Director (CMD), Shishir Baijal, attributed the positive movement in prime property prices in India to a combination of factors. These include robust sales momentum in the category, limited ready inventory, and elevated construction costs in recent years. Baijal remarked that this upswing comes after a prolonged stagnation experienced over the past decade.
The Prime Global Cities Index, which assesses prime residential price fluctuations across 46 cities globally, is based on valuation and tracks nominal prices in local currency.
In the upcoming year, the report projects Mumbai and Auckland to lead the surge in prime residential prices across 26 prominent global markets. Both cities are expected to witness a substantial 5 percent increase in prime residential prices in 2024. The forecast attributes this rise to enhanced GDP figures and substantial investments in infrastructure, positioning Mumbai’s luxury housing market for a notable price ascent.
The collective average price for the 26 global prime residential markets is predicted to grow by 2 percent in the year 2024.