In a remarkable development driven by a growing demand for residential and luxury properties, Mumbai has climbed to the second position in the latest Prime Global Cities Index, released by the global property consultancy firm Knight Frank. This index meticulously tracks the price movements of prime residential properties across 44 major cities around the world.
The most recent Knight Frank report highlights a general slowdown in the annual growth of prime residential property prices worldwide. The growth rate decreased from 4.1% in the first quarter to 2.6% in the second quarter of 2024, which is notably below the long-term average growth rate of 5.3%. Despite this global cooling, Indian cities, particularly Mumbai, have shown impressive resilience and growth.
Mumbai has seen a significant 13% year-on-year increase in the prices of prime residential properties, catapulting the city to the second-fastest growing position globally in Q2 2024. This marks a substantial rise from its sixth-place position in Q2 2023. This surge reflects the city’s robust real estate market, particularly in the premium segment.
Other major Indian cities, including New Delhi and Bengaluru, have also demonstrated strong performance in the prime residential property market. New Delhi recorded a 10.6% increase in prime residential prices, leaping from 26th place in Q2 2023 to an impressive third place in Q2 2024. Meanwhile, Bengaluru maintained its 15th position globally, with a respectable 3.7% increase in prime residential prices.
Shishir Baijal, Chairman and Managing Director at Knight Frank India, commented on the trends, stating, "The premium segment has been the primary driver of sales growth across the Indian market, and this is reflected in the price growth seen during Q2 2024. The increasing affluence of the wealthy and their need for lifestyle-oriented properties has fueled the prime residential market."
On the global stage, Manila led the index with an astounding 26% annual price increase in Q2 2024, showcasing its booming real estate market. Dubai, despite its impressive 124% price surge since 2020, experienced a slight year-on-year decline of 0.3%. Miami, another key player, saw its property prices rise by 8% over the past year, accumulating a staggering 77% increase since 2020.
European markets have also shown signs of momentum, with Stockholm leading the charge. However, some cities, including Madrid, Dubai, and key locations in New Zealand such as Christchurch, Wellington, and Auckland, are witnessing a slowdown in growth rates.
Liam Bailey, Knight Frank’s Global Head of Research, remarked on the global trends, stating, “The slowing in price growth this quarter across global prime markets reflects the fact that, without further stimulus from rate cuts, the bounce in market pricing we have seen over the past few quarters is running out of steam.”
The latest Knight Frank report underscores the dynamic shifts occurring in the global real estate market. While global growth in prime residential prices appears to be cooling, Indian cities like Mumbai and New Delhi are bucking the trend, driven by strong demand in the premium property segment. As the real estate landscape continues to evolve, these cities are positioning themselves as key players in the global market.