Mumbai's luxury real estate surges to 4th global ranking with 6.5% YoY growth
Not just Mumbai but New Delhi and Bengaluru also showcased growth in the luxury residential real estate market.
- Republic Business
- 2 min read
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Mumbai, the financial capital of India, has secured the 4th spot in the latest global luxury real estate rankings, as per Knight Frank's 'Prime Global Cities Index Q3 2023.' This achievement comes on the back of a substantial 6.5 per cent year-on-year growth in prime residential prices, propelling Mumbai from its 22nd rank in Q3 2022.
New Delhi and Bengaluru on the rise
The report also revealed that, not just Mumbai but New Delhi and Bengaluru also showcased growth in the luxury residential real estate market.
New Delhi moved from the 36th rank in Q3 2022 to the 10th rank in Q3 2023, recording a 4.1 per cent YoY growth. Bengaluru also saw a notable rise, moving from the 27th rank in Q3 2022 to the 17th rank in Q3 2023, with a YoY growth of 2.2 per cent.
Manila secured the top position on the index, with prime residential prices soaring by 21.2 per cent YoY in Q3 2023. This growth is attributed to strong domestic and foreign investments.
Dubai, which had held the top position for eight consecutive quarters, fell to the 2nd spot with a 15.9 per cent annual growth. This change was influenced by a sharp decline in quarterly growth from 11.6 per cent in Q2 to 0.7 per cent in Q3.
Global market overview
The report found that the average rise in annual prime residential prices across the 46 markets was 2.1 per cent in the 12-month period ending September 2023, representing the strongest growth rate since Q3 2022.
According to Shishir Baijal, Chairperson and MD, Knight Frank India, "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. 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."
Liam Bailey, Knight Frank's Global Head of Research, cautioned, "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."