Releasing the ‘Key Global Cities Index for Q3 2023’ on Wednesday, Knight Frank India said the average price of prime residential or luxury homes in Mumbai, Bengaluru and New Delhi has increased in the July-September quarter. According to the consultancy’s Prime Global Cities Index, the value of residential markets in 46 cities globally was tracked. In this, price increase of 21.2 percent was seen in Manila. After this, Dubai was at 15.9 percent and Shanghai was at 10.4 percent.
Knight Frank said Mumbai recorded the fourth highest year-on-year growth in prices of prime residential properties in the third quarter of 2023. With this, Mumbai has jumped 18 places from 22nd place in the same quarter last year with a growth of 6.5 percent. New Delhi and Bengaluru have also increased in the index. The National Capital Region (NCR) moved up to 10th position in the index with a growth of 4.1 per cent compared to 36th position in the same quarter last year.
Bengaluru is ranked 17th in the list with a price increase of 2.2 percent. Shishir Baijal, Chairman and Managing Director, Knight Frank India, said strong selling momentum coupled with strong price trends at the upper end of the market have elevated Mumbai’s position on this global ranking scale. At this time last year, Mumbai was at 22nd place in this list. Delhi stood at 36th and Bengaluru at 27th.
Shishir Baijal said that demand was high in high-end homes. He said the sales momentum at higher ticket sizes is much stronger today compared to the last five years. However, amid uncertainty around high interest rates and inflation, the consultancy warned that demand was fragile.
Liam Bailey, global head of research at Knight Frank, said higher rates mean we have moved into a world of low asset price growth. Investors will need to work hard to identify opportunities for outperformance to secure target returns.
The report said that with inflation low and interest rates largely held by central banks, market demand for residential property has improved in many markets, contributing to the improvement in our index results. This revival in demand is fragile and could be derailed if inflation moves surprisingly upward, it said.