Mumbai recorded the 6th highest YoY growth in prices in Q2 2023. Incidentally, the city is forecasted to record the highest annual price at 5% on the Prime Global Cities Index for the year 2024. In Q2 2023, prime residential prices in Mumbai grew at 5.2% year-on-year (YoY). With an increase of 3.6% YoY in Q2 2023, Bengaluru ranked 20th and New Delhi positioned itself at 26th with an increase of 0.2% YoY. Knight Frank ‘Prime Global Cities Index Q2 2023 stated.
Dubai completed eight quarters at the top position globally with an increase of 48.8% YoY in prime residential properties values. The average annual growth rate reached 1.5% across the covered markets that indicates a positive shift after a recent period of uncertainty.
Mumbai and Auckland are forecasted to experience an increase in prime residential prices by 5% in the year 2024. Improving GDP figures, the city’s relative value and investment in infrastructure will be the prime influencers in pushing prices higher for the luxury housing market of Mumbai.
The average price for 26-global prime residential markets is expected to grow at 2% in 2024.
Liam Bailey, Knight Frank's Global Head of Research said "Global housing markets are still under pressure from the shift to higher interest rates - but the latest results from the Knight Frank Prime Global Cities Index confirm that prices are being supported by: strong underlying demand, weak supply following disruption to new-build projects during the pandemic, and an ongoing return of workers to cities. As uncertainty over the direction of inflation appears to have reduced in recent months - price adjustments in many markets are likely to be less pronounced than was expected even three months ago.”
The Prime Global Cities Index is a valuation-based index tracking the movement of prime residential prices across 46 cities worldwide. The index tracks nominal prices in local currency.
