Mumbai ranks 2nd followed by New Delhi at 3rd in Global Property Price Index

Mumbai and New Delhi have witnessed a sharp increase in their annual growth in real estate prices which strikes at 13% and 10.6% respectively. On the other hand, Bengaluru has shown a modest growth with 3.7% increase. In global stage, Manila has topped the Knight Frank’s Prime Global Cities Index with an increase of 26%.

The Prime Global Cities Index is a valuation-focused measure that monitors changes in prime residential property prices across 44 cities globally. It records nominal prices in the respective local currencies. 

In its latest report "Prime Global Cities Index Q2 2024", Knight Frank, a global property consultancy, reported that Mumbai and New Delhi's primary residential markets have registered an annual surge in property prices. The country’s financial capital recorded a rise of 13% YoY while New Delhi witnessed an increase of10.6% YoY. Manila also observed housing price growth by as much as 26% YoY .

In Q2 2024, Mumbai witnessed a surge of 13% in prime residential prices compared to the previous year, resulting in its ascend from sixth place to second on the ranking table. Similarly, New Delhi experienced a YoY price hike of 10.6%, elevating it from twenty-sixth position in Q2 2023 to third place by Q2 2024 as per the analysis conducted.

Bengaluru has maintained its ranking at 15^th place in the Q2 of 2024. According to the Knight Frank analysis, right now Bengaluru is the fastest growing residential market in our country with a strong growth in price of residential properties. This staggering growth is the indicator of the growing wealth and increasingly higher aspirations of the country’s affluent population.

Across the 44 cities world-wide surveyed for this report, annual price growth slowed from 4.1% in Q1 to 2.6% in Q2 2024, remaining below the long-term average of 5.3%, it showed.

In Q2 of 2024, Manila achieved a noteworthy 26% annual growth and secured the top spot on the charts. Dubai, which had experienced an impressive surge of 124% since 2020, saw a slight dip with a YoY decline of just 0.3%. Conversely, Miami has risen by 77% over that same time frame and managed to climb up another eight percent in this last year. Within Europe itself there's been plenty good news too, six out of ten fastest-growing markets were located here as well - Stockholm taking center stage as leader among them all.

 However some lesser-developed areas like Madrid or certain parts within New Zealand including Christchurch & Wellington alongside Auckland are going through slower periods while others continue excelling according their recent reports. Over twelve months ending June-24th global prime residential prices index rose significantly at about two-point-six-percent across it’s forty-four distinct real estate markets worldwide demonstrating robust rise everywhere driven largely from low interest rates conducive environment continuing for most part.

Chairman and Managing Director at Knight Frank India, Shishir Baijal said, "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. We expect this momentum to sustain in 2024, as the economic outlook continues to remain strong and keeps sentiments buoyant.”

He also added, “The biggest influence on future growth is depending on The deceleration of price growth in global prime markets for this quarter indicates that the rebound observed over recent quarters is losing momentum, unless more stimulus from rate cuts ensues.”