The real estate market in major Indian cities like Mumbai, New Delhi, and Bengaluru has been witnessing significant growth in property prices. According to the Knight Frank Prime Global Cities Index, Mumbai and New Delhi have recorded annual increases of 13% and 10.6% respectively, while Bengaluru has seen a more modest rise of 3.7%. Globally, Manila has topped the index with a staggering 26% increase in property prices.
The Prime Global Cities Index tracks the movement of prime residential prices across 44 cities worldwide, measuring nominal prices in local currency. Knight Frank’s recent report, ‚Prime Global Cities Index Q2 2024‘, highlighted the growth in prime residential prices in Mumbai and New Delhi. Mumbai saw a 13% year-on-year increase, propelling it to the 2nd position in the ranking table from 6th place in the previous year. New Delhi, with a 10.6% year-on-year rise, jumped from 26th to 3rd place in the rankings.
Bengaluru, as the largest residential market in India, maintained its position at 15th place with a 3.7% increase in prime residential prices. The strong price growth in prime properties reflects the growing wealth and aspirations of the country’s affluent population. Demand for premium properties has been robust, driving overall sales in the market.
Despite the growth in Indian cities, the global prime residential price index saw a slowdown in annual price growth from 4.1% in Q1 to 2.6% in Q2 2024, remaining below the long-term average. Manila’s 26% increase led the charts, while Dubai and Miami also showed significant growth. European markets, particularly Stockholm, experienced strong growth, while markets like Madrid, Dubai, and New Zealand saw a slowdown.
Shishir Baijal, Chairman and Managing Director at Knight Frank India, attributed the strong sales growth in the Indian market to the premium segment, driven by the increasing affluence of the wealthy population. He expects this momentum to continue in 2024, supported by a strong economic outlook. However, Liam Bailey, Knight Frank’s Global Head of Research, cautioned that without further stimulus from rate cuts, the market pricing bounce may lose steam.
In conclusion, the real estate market in major Indian cities like Mumbai, New Delhi, and Bengaluru is experiencing significant growth in property prices, driven by demand for premium properties. While global markets have shown mixed growth trends, the outlook for the Indian market remains positive, contingent on economic factors and central bank policies.
