The financial capital, which ranks second in terms of yearly price rise due to the surge in residential demand in the city, particularly for premier properties, saw a strong gain on the worldwide index in the second quarter of this year, according to a report released on Friday.
According to data from Knight Frank, Mumbai saw the second-highest (YoY) gain in prime residential prices in Q2, moving it up the ranking table from sixth place in Q2 2023 to second place with a 13% (year-over-year) price increase in premier residences.
New Delhi saw a remarkable leap in rankings, moving up from 26th in Q2 2023 to third in Q2 2024, thanks to a YoY increase in prime residential property prices of 10.6%. Bengaluru (3.7%) held its position as the 15th-ranked city in both the Q2 2023 and Q2 2024.
The Indian market’s sales growth has primarily been driven by the premium category, as evidenced by the price growth observed in Q2 2024. The premier residential market has been driven by the wealthy’s growing prosperity and their desire for lifestyle-oriented residences, according to Shishir Baijal, Chairman and Managing Director of Knight Frank India.
The trend in premium residential prices across 44 locations worldwide is tracked by the valuation-based “Prime Global Cities Index Q2 2024.” The nominal prices in local currency are tracked by the index.
The yearly rate of price rise in the 44 cities under study decreased from 4.1% in Q1 to 2.6% in Q2 2024, staying below the historical average of 5.3%. Manila topped the table in Q2, registering an annual growth of 26%.
Throughout the 44 markets, the increase in the worldwide prime residential price index was 2.6% over the 12-month period that concluded in June 2024.
According to Baijal, “We anticipate that this momentum will continue in 2024 as the economic outlook remains strong and keeps sentiments buoyant.”
Liam Bailey, Global Head of Research at Knight Frank, believes that central banks’ willingness to continue reducing interest rates over the coming year will have the most impact on future price rise.
