Mumbai, India’s financial hub, has seen a huge rise in prime property prices, ranking second among 44 major cities globally for the largest increase in prices during the quarter ending in June. This surge is due to high demand for luxury homes in the city. Mumbai jumped up the list from 6th place just a year ago.
According to Knight Frank’s Prime Global Cities Index, Manila led the way with a 26% price increase, while Mumbai followed closely with a 13% rise. Other Indian cities like New Delhi and Bengaluru also saw price increases for prime properties, with New Delhi rising by 10.6% and Bengaluru by 3.7%. New Delhi made a big jump to the 3rd spot, up from 26th last year, while Bengaluru held its 15th position.
The demand for luxury properties has been strong, driving most of the sales growth in the market this year.
“The high-end property market is leading sales growth across India, reflected in the price increases we saw in the June quarter. Wealthier buyers are driving this demand, looking for properties that fit their lifestyle needs. We expect this trend to continue into 2024, as the strong economy keeps confidence high,” said Shishir Baijal, Chairman and Managing Director of Knight Frank India.
The Prime Global Cities Index tracks prime property prices in 44 cities worldwide. While overall price growth slowed to 2.6% in the second quarter of 2024 from 4.1% in the previous quarter, it remains below the long-term average of 5.3%.
Dubai and Miami, which saw huge price jumps since 2020, experienced slower growth. European cities are gaining momentum, led by Stockholm, while markets like Madrid, Dubai, and New Zealand cities are slowing down.
Liam Bailey, Knight Frank’s Global Head of Research, noted, “The slowdown in price growth reflects that without further rate cuts, the recent rise in market prices is losing momentum. Future price growth will largely depend on central banks and their willingness to cut rates over the next year.”
Unlike many global markets, India’s prime property markets remain strong, showing steady growth. The increase in luxury property prices in India’s biggest cities indicates rising wealth and higher aspirations among the country’s affluent population.
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