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The ranking of Mumbai has improved significantly on 'Prime Global Cities Index Q2 2024', in an international index by Knight Frank, a property consultancy firm.
The report stated that Mumbai now holds the second spot for annual price growth, driven by a surge in residential demand, especially for luxury properties.
It also added that similar trends were observed in New Delhi and Bengaluru, where high-end and premium property prices also increased due to strong demand. This demand for premium properties has been the main driver of overall sales so far this year.
Prices of prime residential properties
The Prime Global Cities Index, which tracks the prices of prime residential properties in 44 cities worldwide, reported a slowdown in annual price growth, dropping from 4.1 per cent in the first quarter to 2.6 per cent in the second quarter of 2024, below the long-term average of 5.3 per cent.
"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" said Shishir Baijal, Chairman and Managing Director at Knight Frank India The report mentioned that Manila topped the chart with a 26 per cent annual price increase in the second quarter of 2024. Dubai, after a 124 per cent rise since 2020, saw a slight decrease of 0.3 per cent year-on-year, while Miami, which has risen 77 per cent since 2020, experienced an 8 per cent increase over the past year.
European markets
European markets also gained momentum, with Stockholm leading six of the ten fastest-improving markets. However, cities like Madrid, Dubai, and those in New Zealand (Christchurch, Wellington, and Auckland) are seeing a slowdown in growth.
"The slowing in price growth this quarter across global prime markets reflects the fact that, without further stimulus from rate cuts, the bounce in market pricing we have seen over the past few quarters is running out of steam" said Liam Bailey, Knight Frank's Global Head of Research.
The report highlighted that in contrast to the global markets the Indian markets have shown exceptional performance, with all major cities experiencing growth in prime residential prices.
Prime residential prices - Mumbai
Mumbai recorded a 13 per cent year-on-year increase in prime residential prices, making it the second fastest-growing city globally in Q2 2024, up from 6th place in Q2 2023.
New Delhi saw a 10.6 per cent increase, jumping from 26th place in Q2 2023 to 3rd in Q2 2024. Bengaluru remained steady at 15th place with a 3.7 per cent increase.
These strong price growths in India's major residential markets reflect the rising wealth and aspirations of the country's affluent population. The global prime residential price index recorded a 2.6 per cent increase across 44 markets in the 12-month period ending in June 2024.
