Knight Frank, the property consultancy firm, in its recent report ‘Prime Global Cities Index Q3 2023’ noted that Mumbai, New Delhi and Bengaluru, all the 3 Indian cities considered for the study recorded an increase in average annual prices of prime residential or luxury homes in Q3 2023.
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Mumbai recorded the 4th highest YoY growth in prime residential prices in Q3 2023. The 6.5% increase in prime residential prices has moved the city up by 18 places from 22nd rank in Q3 2022.
New Delhi and Bengaluru too recorded an upward movement in their index rankings. NCR moved from 36th rank in Q3 2022 to 10th in Q3 2023 with a growth of 4.1% YoY.
Bengaluru’s rank increased from 27th rank in Q3 2022 to 17th rank in Q3 2023 with a YoY growth of 2.2%.
The average rise in annual prime residential prices was recorded at 2.1% across the 46 markets in the 12-month period ending September 2023. This is the strongest growth rate recorded since Q3 2022 and reflects 67% of cities seeing growth on an annual basis.
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Shishir Baijal, chairman and MD, Knight Frank India, said, “The robust price trend in the upper end of the market coupled with strong sales momentum has elevated Mumbai’s position in this global ranking scale. Sales momentum is significantly stronger in the higher ticket sizes today, than it has been in the past five years. The homebuyers’ increasing need to upgrade their lifestyle, coupled with stable economic prospects of the country and improving market sentiments should sustain price growth in the short to medium term.”
Manila claimed the top spot in the ranking with a 21.2% annual rise in prices. Manila’s performance is attributed to strong domestic and foreign investments.
Dubai, with its 15.9% annual growth, has been displaced from the top position for the first time in eight quarters due to a sharp decline in quarterly growth from 11.6% in Q2 to 0.7% in Q3.
San Francisco was the weakest performing market with a decline of 9.7% YoY.
The Prime Global Cities Index is a valuation-based index tracking the movement of prime residential prices across 46 cities worldwide.
The index tracks nominal prices in local currency.
Liam Bailey, Knight Frank’s Global Head of Research, said, “The improvement in average annual house price growth will be welcomed by prime market homeowners but shouldn’t be overstated. Higher rates mean we have moved into a world of lower asset price growth – and investors will need to work harder to identify opportunities for outperformance to secure target returns.”
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