Mumbai Hogs Limelight in Global Cities Index

Led by Mumbai three Indian cities including  Bengaluru and Delhi have recorded healthy growth in global prime residential prices. The commercial capital of Mumbai which occupies sixth position in the Prime Global Cities Index, is also projected to witness the highest annual increase in prime residential prices in 2024.

According to a recent  Knight Frank  report on Prime Global Cities Index 2023, Mumbai recorded the 6^th highest YoY growth in prices in Q2 2023. Incidentally, the city is forecasted to record the highest annual price at 5% on the Prime Global Cities Index for the year 2024.  In Q2 2023, prime residential prices in Mumbai grew at 5.2% year-on-year (YoY). With an increase of 3.6% YoY in Q2 2023, Bengaluru ranked 20^th and New Delhi positioned itself at 26^th with an increase of 0.2% YoY.

Dubai completed eight quarters at the top position globally with an increase of 48.8% YoY in prime residential properties values. The average annual growth rate reached 1.5% across the covered markets that indicates a positive shift after a recent period of uncertainty.

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. 

 Knight Frank Prime Global Cities Index 2023 (Ranked by annual % Change)

      Source: Knight Frank Research

According to Shishir Baijal, Chairman and Managing Director, Knight Frank India , “aginst the backdrop of sluggish global growth and worries about inflation that defined a significant portion of 2023, the Indian economy stood out as a remarkable achiever. While central banks in major developed economies around the world were announcing unprecedented policy rate hikes, the Indian economy, demonstrating stronger growth momentum and better control over inflation, managed to maintain stability in its policy interest rates over the last two quarters. This distinctive approach led to the persistence of robust sales levels in the residential markets, in contrast to the market reflections of action taken by most other major economies. Besides, coming out of a prolonged stagnation over the last decade, prime property price movement in the country was also positively influenced by strong sales momentum in the category amid limited ready inventory, and increased construction cost in recent years.”

Knight Frank  report has also provided the forecast for 26 global prime residential markets for the year 2024. In this study, it has cited    Mumbai and Auckland to lead the highest change in prime residential prices. Both the cities are forecasted to experience an increase in prime residential prices by 5% in the year 2024. Improving GDP figures, the city’s relative value and investment in infrastructure will be the prime influencers in pushing prices higher for the luxury housing market of Mumbai.

The average price for 26-global prime residential markets is expected to grow at 2% in 2024. 

Mumbai and Auckland lead prime price forecast for 2024

Source: Knight Frank Research

Liam Bailey, Knight Frank’s Global Head of Research concludes, “Global housing markets are still under pressure from the shift to higher interest rates – but the latest results from the Knight Frank Prime Global Cities Index confirm that prices are being supported by strong underlying demand, weak supply following disruption to new-build projects during the pandemic, and an ongoing return of workers to cities. As uncertainty over the direction of inflation appears to have reduced in recent months – price adjustments in many markets are likely to be less pronounced than was expected even three months ago.”