Mumbai and Delhi Drive Global Surge in Prime Residential Markets
Indian cities buck global trend with robust growth in prime residential property markets, led by Mumbai and Delhi
MumbaiDelhiPrime Residential MarketsGlobal Real EstateKnight FrankReal Estate MumbaiAug 23, 2024
The surge in Mumbai's residential demand, particularly in the high-end segment, has propelled the city up the Prime Global Cities Index, marking a significant milestone in the global real estate market.
The 'Prime Global Cities Index Q2 2024' report notes that the average annual price increase across 44 key residential markets worldwide was 2.6% in the 12-month period ending June 2024. However, Indian cities have bucked this global trend, with Mumbai, New Delhi, and Bengaluru all registering robust growth in their prime residential property markets.
Mumbai's YoY price rise of 13% in prime residences has catapulted the city to the 2nd position globally, up from 6th in Q2 2023. This growth reflects the strong demand for luxury properties in India's financial capital, driven by increasing wealth and aspirations among the city's affluent population.
New Delhi also recorded impressive gains, with a 10.6% YoY increase in prime residential property prices. This sharp rise has seen the national capital leap from 26th place in Q2 2023 to 3rd in Q2 2024 on the global index. Meanwhile, Bengaluru maintained its position, with a 3.7% YoY growth in prime residential prices, holding steady at 15th place on the index.
Shishir Baijal, Chairman and Managing Director at Knight Frank India, commented on the findings, stating, '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 fuelled the prime residential market. We expect this momentum to sustain in 2024, as the economic outlook continues to remain strong and keeps sentiments buoyant.'
Globally, Manila led the Prime Global Cities Index with an astonishing 26% YoY growth in prime residential prices in Q2 2024. Meanwhile, cities like Dubai and Miami, which have seen substantial price increases since 2020, experienced more moderate growth.
European markets also showed momentum, with six of the ten fastest-improving markets located in Europe, led by Stockholm. However, markets like Madrid, Dubai, and major cities in New Zealand, including Christchurch, Wellington, and Auckland, are experiencing a slowdown in growth.
About Knight Frank
Knight Frank is a global real estate consultancy that provides a wide range of services to its clients, including residential and commercial property sales, leasing, and investment.
Information
The Prime Global Cities Index is a quarterly report that tracks the performance of prime residential markets across the world. The report provides a comprehensive analysis of the trends and patterns in the global prime residential market.
Frequently Asked Questions
What is the Prime Global Cities Index?
The Prime Global Cities Index is a quarterly report that tracks the performance of prime residential markets across the world.
Which city has recorded the second-highest annual price growth in the world for prime residential properties in Q2 2024?
Mumbai
What is the average annual price increase across 44 key residential markets worldwide in the 12-month period ending June 2024?
2.6%
Which city has led the Prime Global Cities Index with an astonishing 26% YoY growth in prime residential prices in Q2 2024?
Manila
What is the outlook for the prime residential market in India in 2024?
The momentum is expected to sustain in 2024, as the economic outlook continues to remain strong and keeps sentiments buoyant.
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