The average annual prices of prime residential properties in Mumbai, New Delhi, and Bengaluru have risen significantly in the second quarter of 2024, according to a report by global real estate consultants Knight Frank.
Mumbai ranked second internationally in terms of annual price growth, recording a major increase due to rising demand in the city.
A similar tendency was seen in cities like New Delhi and Bengaluru, where prices rose for high-end and premium residential properties driven by strong demand.
The report, ‘Prime Global Cities Index Q2 2024,' revealed that Mumbai witnessed a 13% year-on-year rise in prime residential prices, placing the Maximum city second among the cities surveyed for Q2 2024, up from sixth in Q2 2023.
The National Capital, New Delhi recorded a 10.6% year-on-year increase in prime residential property prices, jumping from 26th in Q2 2023 to third in Q2 2024.
Bengaluru's prime residential property prices rose by 3.7% in Q2 in 2024. The Garden City maintained its 15th position in Q2 2023 and Q2 2024.
The report highlighted that India was one the largest residential markets in the world, and the strong price growth in prime residential properties reflected the growing wealth and aspirations of the country’s affluent population.
“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,” said Shishir Baijal, Chairman and Managing Director at Knight Frank India.
“The increasing affluence of the wealthy and their need for lifestyle-oriented properties has fuelled the prime residential market. We expect this momentum to sustain in 2024, as the economic outlook continues to remain strong and keeps sentiments buoyant,” Shishir added.
Globally, among the 44 cities surveyed, annual price growth slowed from 4.1% in Q1 to 2.6% in Q2 2024, which is below the long-term average of 5.3%.
The survey was topped by Manila, which recorded a 26% annual rise in Q2 2024. Dubai, which had reported a 124% increase since 2020, witnessed a decline of 0.3% on a YoY basis, whereas Miami, which grew by 77% since 2020, rose by 8% last year.
Price growth also improved in Europe, with six of the 10 fastest-improving markets, mainly led by Stockholm. However, markets such as Madrid, Dubai, and New Zealand (Christchurch, Wellington, and Auckland) have reported a slowdown in growth.
