Mumbai, Aug 23: The financial capital recorded a significant increase on the international index in the second quarter this year -- ranking second in terms of annual price growth as a reflection of the surge in residential demand in the city, especially for prime properties, a report showed on Friday.
Mumbai, with a price rise of 13 per cent (year-on-year) in prime residences, recorded the second highest (YoY) growth in prime residential prices in Q2, pushing it up the ranking table to second position from its sixth rank in Q2 2023, according to data by Knight Frank.
New Delhi, which recorded a rise of 10.6 per cent YoY in prime residential property prices, made a stupendous jump in rankings going from 26th in Q2 2023 to third in Q2 2024. Bengaluru (3.7 per cent) maintained status quo on rank 15th in Q2 2023 and Q2 2024.
“The premium segment has been the primary driver of sales growth across the Indian market, and this is reflected in the price growth seen during Q2 2024. The increasing affluence of the wealthy and their need for lifestyle-oriented properties has fuelled the prime residential market,” said Shishir Baijal, Chairman and Managing Director at Knight Frank India.
The ‘Prime Global Cities Index Q2 2024’ is a valuation-based index tracking the movement of prime residential prices across 44 cities worldwide. The index tracks nominal prices in local currency. Across the 44 cities surveyed, annual price growth slowed from 4.1 per cent in Q1 to 2.6 per cent in Q2 2024, remaining below the long-term average of 5.3 per cent. The chart was topped by Manila which led with a 26 per cent annual rise in Q2.
The rise in global prime residential price index was recorded at 2.6 per cent across the 44 markets in the 12-month period ending June 2024. “We expect this momentum to sustain in 2024, as the economic outlook continues to remain strong and keeps sentiments buoyant,” said Baijal. According to Liam Bailey, Knight Frank's Global Head of Research, the biggest influence on future price growth lies in the hands of central banks and their confidence to cut rates further over the next 12 months.
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