These two metropolitan hubs, Delhi and Mumbai, saw an exceptional surge in the rates of prime residential properties during the January-March period of 2024. In contrast, Bengaluru observed a modest downturn, as indicated by findings from Knight Frank's 'Prime Global Cities Index Q1 2024' report.
In a significant shift, Mumbai surged from the sixth to the third position globally in year-on-year (YoY) growth of prime residential prices, as reported in Q1 2024, marking a notable climb from its previous standing in Q1 2023. This remarkable advancement was fueled by robust demand for premium properties within the city. New Delhi experienced a significant jump in rankings, progressing from the 17th position in Q1 2023 to the 5th position in Q1 2024, showcasing a notable 10.5 per cent YoY growth in residential prices.
Conversely, Bengaluru saw a slight setback, sliding from the 16th to the 17th position, despite registering a 4.8 per cent YoY price increase.
Knight Frank India attributes the surge in house prices in its major cities to the country's robust economic growth, with an annual GDP exceeding 8 per cent. This trend mirrors a broader global pattern, where prime residential prices across 44 markets witnessed a 4.1 per cent increase in the 12 months ending March 2024. This represents the swiftest rate of growth observed since Q3 2022.
Shishir Baijal, chairman and managing director at Knight Frank India, highlighted the robust demand for residential properties on a global scale, particularly in the critical markets of Asia-Pacific and EMEA. He credited the enhanced rankings of Mumbai and New Delhi to the resilient growth in sales volumes.
"We expect the momentum of sales to remain stable over the next few quarters as the economic conditions are likely to remain broadly unchanged," Baijal added.
Meanwhile, Manila takes the lead with a remarkable 26.2 per cent annual increase in prices, attributed to its robust economic performance and significant infrastructure investments. Tokyo follows closely behind, experiencing a noteworthy 12.5 per cent YoY growth, catapulting it 17 positions to second place in the rankings.