Mumbai records the sixth-highest annual growth in prime residential property prices among global cities during April-June 2023, according to Knight Frank. In its Prime Global Cities Index report, it has forecasted a further increase of five percent in property prices in Mumbai by 2024. Read on to know the current rankings, forecasted growth and list of cities involved.
According to Prime Global Cities Index by Knight Frank, Mumbai has recorded the sixth highest year-on-year growth in prime residential property prices among global cities. With a forecasted increase of five percent for the year 2024, Mumbai is expected to witness the highest rise in the prime residential segment, along with New Zealand’s Auckland.
What is the Prime Global Cities Index?
The valuation-based index called the Prime Global Cities Index, tracks the changes in prime residential properties across 46 cities around the world. Nominal prices in local currency are tracked by the index.
What is the current growth in property prices?
In April – June 2023, Mumbai’s prime residential prices grew at 5.2 percent YoY, placing it in the sixth position globally. On the other hand, Bangalore recorded an increase of 3.6 percent YoY, bagging the global rank of 20. Further, The Prime Global Cities Index has placed New Delhi in the 26th position with a hike of 0.2 percent.
Dubai has completed eight quarters, maintaining the top spot in prime residential property values with an increase of 48.8 percent YoY. The average annual growth across all markets covered in the report reached 1.5 percent, indicating a positive shift post the recent uncertainty. After Dubai, Tokyo recorded a 26.2 percent hike, Manila witnessed an increase of 19.9 percent, Miami at 7.5 percent and Shanghai at 6.7 percent in Q2 2023.
Forecast of other cities as per the Prime Global Cities Index
The recent report suggests that Mumbai and Auckland will lead with biggest change in prime residential property values. Both cities are expected to record a five percent increase in the year 2024.
What is influencing this hike in Mumbai?
Improving Gross Domestic Product (GDP), relative value, and investment in infrastructure are prime influencers behind the higher prices in Mumbai’s luxury housing market in the city
