In its latest report, Global Residential Cities Index Q2 2023, Knight Frank, an international property consultancy, cited that residential price growth across the 107 world cities has slowed in Q2 2023, falling to 1.7% YoY from 11.7% YoY in Q2 2022. This is recorded to be lower than that experienced in the first wave of the pandemic, when growth reached a low of 2.9% in Q2 2019.
Knight Frank’s Global Residential Cities Index provides a quarterly snapshot of trends in mainstream housing markets across more than 100 world cities.
With an annual percentage change of 6%, Mumbai has significantly moved up 76 places to secure the 19th position on Knight Frank’s Global Residential Cities Index Q2 2023 from 95th in Q2 2022. Mumbai is the highest ranking Indian city by percentage increase on the global index.
Bengaluru becomes the second highest ranked Indian city on Global Residential Cities Index Q2 2023, climbing to 22nd position from 77th in Q2 2022. The city witnessed residential price appreciation of 5.3% YoY in Q2 2022.
New Delhi ranked 3rd amongst the Indian cities and 25th globally with residential price appreciation of 4.5% YoY in Q2 2023. The city climbs 65 spots from the 90th rank in Q2 2022.
In Q2 2023, Chennai and Kolkata ranked 4th and 5th respectively among the Indian cities and globally were at 39th and 40th ranking on the global index with a price appreciation of 2.5% each respectively in the residential asset class. However, at the same time last year the cities stood at a rank of 107th and 114th globally.
The Turkish capital Ankara leads Knight Frank’s Global Residential Cities Index Q2 2023 with the highest growth rate of 105.9%, followed by Istanbul at 85.1%. Stockholm ranked the lowest in terms of price appreciation (-14.3.0%) on the Global Residential Cities Index.
Liam Bailey, global head of research, Knight Frank, said, “There is early evidence that conditions are beginning to improve in a number of key global city markets. While it’s likely that rising rates are now behind us, homeowners can expect to contend with current interest rate levels for the foreseeable future, which will limit the pace of the global housing market’s recovery.”
Shishir Baijal, chairman & MD, Knight Frank India, said, “Residential prices have grown at a healthy clip along with strong demand since the beginning of 2022. Even while rates rose, consumer confidence remained buoyant leading to growing sales volumes. The comparatively strong economic fundamentals in India are expected to sustain demand momentum for residential assets, both for homebuyers and global investors.”
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