Mumbai 19th most expensive city globally as residential prices surge 6% annually: Report

Mumbai reported a price growth of 6 per cent year-on-year during the quarter, surpassing the global average of 1.7 per cent. This is in contrast to the 6.1 per cent growth seen in the previous year.

Bengaluru and Delhi followed with price rises of 5.3 per cent (down from 8.9 per cent) and 4.5 per cent (down from 6.5 per cent), respectively, according to the "Global Residential Cities Index Q2 2023" by real estate consultancy Knight Frank.

Soaring demand 

The surge can be attributed to the rise in demand among Indian consumers. On the other hand, the global residential price growth in the top 107 cities around the world slowed down significantly.

The global residential price growth in the top 107 cities increased by 1.7 per cent in the April-June quarter, compared to 11.7 per cent during the same quarter in the previous year.

“There is early evidence that conditions are beginning to improve in several key global city markets. While it's likely that rising rates are now behind us, homeowners can expect to contend with current interest rate levels for the foreseeable future, which will limit the pace of the global housing market’s recovery,” said Liam Bailey, Knight Frank’s global head of research.

Notably, the rankings of these Indian cities in terms of residential price rises have seen significant improvements. Mumbai is now ranked 19th out of 107 countries, a substantial jump from its 95th position the previous year. Similarly, Bengaluru has moved to the 22nd position from the 77th, and Delhi is now ranked 25th, compared to its 90th position the previous year.

Chennai and Kolkata, which were ranked 4th and 5th, respectively, among Indian cities during the quarter, also made significant gains on the global scale, with rankings of 39th and 40th. This is a noteworthy improvement from their global rankings of 107th and 114th in the previous year.

On a global scale, the steepest price increases during the quarter were observed in Ankara, with a rise of 105.9 per cent, followed by 85.1 per cent in Istanbul and 17.4 per cent in Dubai.