Updated February 29th, 2024 at 14:27 IST

Mumbai jumps from 37th to 8th in global luxury real estate rankings

Mumbai witnessed a 10% year-on-year increase in annual luxury residential prices.

Reported by: Business Desk
Luxury house | Image:Pexels
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Mumbai luxury momentum: Mumbai has made a leap in the global luxury residential market, according to Knight Frank's wealth report 2024. The city's ascent in the Prime International Residential Index (PIRI) index, soared from the 37th to the 8th position, which highlights a 10 per cent year-on-year (YoY) increase in annual luxury residential prices.

This growth firmly cements Mumbai's status amongst the top 10 luxury residential markets worldwide. Notably, Delhi and Bengaluru have also experienced positive shifts in their rankings.

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Global luxury snapshot

The report reveals a promising trend in the luxury residential market, with the value of the PIRI index registering a 3.1 per cent increase in 2023. Amongst the 100 luxury residential markets monitored, 80 recorded positive to neutral annual price growth. Manila leads the rankings with a 26 per cent increase, followed closely by Dubai (16 per cent), which slipped one spot from its previous lead. The Bahamas (15 per cent) secured the third position, with the Algarve and Cape Town both recording a substantial 12.3 per cent increase, completing the top five.

Regionally, Asia-Pacific emerged as the strongest-performing world region, surpassing the Americas, with a 3.8 per cent increase compared to 3.6 per cent, respectively. European, Middle Eastern, and African markets followed with a 2.6 per cent rise. Sun locations experienced the highest growth at 4.7 per cent, followed closely by ski resorts at 3.3 per cent, and city markets at 2.7 per cent.

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Global realty resilience

Kate Everett-Allen, head of international residential and country research at Knight Frank, highlighted initial concerns about weaker outcomes in global residential property markets at the onset of 2023. However, the current performance has proven to be more resilient, with softer landings observed worldwide.

Shishir Baijal, Chairperson & Managing Director, Knight Frank India, stressed the growth of the country's luxury residential market, particularly Mumbai's rise on the global stage. With a forecasted 5.5 per cent prime price growth in 2024, Mumbai ranks second amongst 25 global cities, reinforcing India's status as a prime destination for luxury real estate investment.

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What can you get for $1 million?

Despite reductions in space purchase for $1 million in Mumbai, Delhi, and Bengaluru, these cities continue to offer attractive options. Mumbai, for instance, provides 103 sq mt of prime residential space for $1 million, marking a decrease from 113 sq mt in 2022. Similarly, Delhi and Bengaluru offer 217 and 377 sq mt, respectively, showing slight reductions compared to previous years.

The report overall indicates a promising outlook for the luxury residential market in the country and reaffirms Mumbai's growing prominence as a global hub for luxury real estate investment.

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Published February 29th, 2024 at 14:27 IST