Mumbai climbs to 2nd spot globally with 13% jump in luxury property prices

Mumbai real estate: Mumbai has witnessed the second-highest rise in prime residential property prices globally in Q2 2024, according to a report by Knight Frank. The city’s rise in residential demand, specifically for high-end properties, is the driving factor for Mumbai's second position with a 13 per cent surge in property prices.

New Delhi and Bengaluru also recorded surge in their prime residential markets. New Delhi saw a 10.6 per cent year-on-year (YoY) increase, climbing from 26th place in Q2 2023 to 3rd position this quarter. Bengaluru, maintaining a steady performance with a 3.7 per cent rise, held its position at 15th.

Manila led the index

According to the Knight Frank Prime Global Cities Index for Q2 2024 Manila led the index with a 26 per cent increase, Los Angeles and Miami also show notable growth, with prices up 8.9 per cent and 7.1 per cent, respectively.

Nairobi, Madrid, Lisbon, Seoul, and San Francisco complete the top ten, with annual increases ranging from 6.6 per cent to 4.5 per cent. Conversely, the bottom performers are Wellington, with a 5.9 per cent decline, Bangkok at -3.9 per cent, and Vienna, which saw a 3.2 per cent drop.

Globally, average annual price growth across the 44 cities surveyed slowed to 2.6 per cent, down from 4.1 per cent in the previous quarter and below the long-term average of 5.3 per cent.

Increasing affluence

Prime residential markets of the country bucked the global trend, with notable growth highlighting India's increasing affluence and rising aspirations amongst the wealthy.

“The premium segment continues to drive sales growth across the Indian market, with the increasing affluence of the wealthy fuelling the prime residential market. We anticipate this trend to persist throughout 2024, supported by a strong economic outlook,” said Shishir Baijal, Chair and MD Knight Frank India.

Liam Bailey, Knight Frank's Global Head of Research, commented on the global slowdown, stating, “The deceleration in price growth this quarter suggests that recent market gains are beginning to wane. Future price increases will largely depend on central banks’ decisions regarding rate cuts in the coming year.”