Mumbai ranked at number 8 globally in terms of price growth in luxury housing

Mumbai is now among the top 10 luxury residential markets in the world. The city is ranked at number 8 globally in terms of price growth in luxury housing

Mumbai is now among the top 10 luxury residential markets in the world. The city is ranked at number 8 globally in terms of price growth in luxury housing. Delhi takes the 37th spot and Bengaluru 59th position, according to Knight Frank’s The Wealth Report 2024.

According to Knight Frank’s The Wealth Report 2024, the value of the Prime International Residential Index (PIRI 100) has increased by 3.1% in 2023 showcasing solid overall gains. Of the 100 luxury residential markets tracked, 80 recorded positive to neutral annual price growth. Manila (26%) leads the rankings, followed by Dubai (16%) and Bahamas (15%).

Mumbai’s rank has improved to 8th on Knight Frank’s PIRI’s index in 2023 as compared to 37th rank in 2022 which is a phenomenal jump of 10% year-on-year growth in terms of annual luxury residential price rise. This jump has marked a place for Mumbai in the top 10 leading luxury residential markets.

Delhi is ranked 37th and showcased a rise of 4.2% YoY in 2023 as compared to 77th rank in 2022. Bengaluru stands at 59th rank compared to 63rd in 2022 recording a 2.2% YoY increase in 2023, according to the Index.

Asia-Pacific (3.8%) pipped the Americas (3.6%) to the title of the strongest-performing world region, with Europe, the Middle East and Africa trailing (2.6%). Sun locations continue to outperform city and ski markets, up 4.7% on average. Ski resorts are close behind (3.3%) and prime prices in the city market tracked have risen 2.7% on average, it said.

Kate Everett-Allen, head of international residential and country research at Knight Frank said, “At the start of 2023, economists were expecting a much weaker outcome across global residential property markets. Stock markets were heading for more pain, inflation was veering out of control and the pandemic-fuelled property boom was set to end in tears as borrowing costs hit 15-year highs in some markets. However, that never happened – we’ve seen a much softer landing in terms of price performance around the world.”

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said “Luxury residential market has shown remarkable growth, as highlighted in Knight Frank’s Wealth Report 2024. Mumbai’s ascent to the 8th rank globally, with a staggering 10% year-on-year increase in luxury residential prices, underscores the city’s enduring appeal. While Mumbai logged into the top 10 league among PIRI 100 cities, Delhi and Bengaluru also demonstrated positive momentum by improving their ranks.”

The outlook for 2024 remains bright as Mumbai with a 5.5% prime price growth forecast, ranks second among the 25 cities globally. “As we navigate the complexities of the global market, India’s emergence as a prime destination for luxury real estate investment is undeniable,” he added.

How much space can $1 million buy? 103 sq m in Mumbai and 377 sq m in Bengaluru

Monaco continues its reign as the world’s most expensive city where $1 million can get you 16 sq. mt. of space, followed by Hong Kong (22 sq. mt.) and Singapore (32 sq. mt.) in 2023, Knight Frank’s The Wealth Report 2024 has said.

Comparatively in Mumbai, one can purchase 103 sq. mt. of prime residential real estate, marking a decline of 9% in space YoY. In 2022, one could have bought 113 sq m.

In Delhi and Bengaluru one can purchase 217 sq. mt. and 377 sq. mt. of prime residential real estate respectively. Last year, one could buy 226 sq m and in Bengaluru 385 sq m, the survey said.

All the three Indian cities (Mumbai, Bengaluru, and Delhi) have recorded a reduction in space purchase for $1 million.

Knight Frank’s PIRI (Prime International Residential Index) pricing provides an annual guide to how much space your money will buy you when it comes to prime residential property. There is significant variation in prime prices across luxury residential markets.

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