Mumbai recorded the fourth highest year-on-year growth in prime residential prices among global cities for the quarter ended September 2023, according to Knight Frank’s Prime Global Cities Index.
The 6.5 per cent increase in prime residential prices has moved the city up by 18 places from 22nd rank in September 2022. New Delhi and Bengaluru too recorded an upward movement in their index rankings. NCR moved from 36th rank a year ago to 10th in September 2023 with a growth of 4.1 per cent YoY, Knight Frank said.
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.
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Bengaluru’s rank increased from 27 in 2022 to 17 in 2023 with a growth of 2.2 per cent.
The average rise in annual prime residential prices was recorded at 2.1 per cent 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 per cent of cities seeing growth on an annual basis, it said.
Global cities index.
Manila claimed the top spot with a 21.2 per cent rise in prices. This is attributed to strong domestic and foreign investments. Dubai, with its 15.9 per cent 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 per cent in June quarter to 0.7 per cent in September quarter. San Francisco was the weakest market with a decline of 9.7 per cent on a year-on-year basis.
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.”
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“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,” he said.
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.”