February 6, 2024: Bangalore, Mumbai and National Capital Region (NCR) have been ranked among the top 10 best-performing Asia-Pacific residential markets in terms of annual price growth in H2 2023, according to the latest report by property consultancy firm Knight Frank. According to the review, 21 out of 25 Asia-Pacific (APAC) cities have recorded positive annual price growth with Singapore ranked as the best-performing Asia-Pacific market with 13.7% year-on-year (YoY) growth.
The report titled ‘Asia-Pacific Residential Review Index for H2 2023’ mentioned that Bangalore was ranked 8th on the Asia-Pacific Residential Review, registering a price growth of 7.1% YoY in H2 2023. Mumbai ranked 9th, witnessing a YoY growth of 7.0%, while NCR was ranked 11th with a price growth of 6% YoY in the period. Mumbai, NCR and Bangalore constituted 60% of the total sales volume across Indian markets in 2023.
The report stated that Bangalore is gaining interest from non-city-centric developers, leading to a significant 24% surge in the number of launches in the city during H2 2023. The city recorded sales of 27,799 units in H2 2023. The average price in the city is recorded at Rs 5,900 per sqft.
Mumbai saw a significant improvement in sales in H2 2023, largely due to heightened demand during festive periods like Navratri, Dussehra and Diwali. The city recorded sales of 46,073 units in H2 2023. The average price in the city is recorded at Rs 7,883 per sqft. The average price in NCR was recorded at Rs 4,579 per sqft. The region witnessed sales of 29,888 units in H2 2023.
Shishir Baijal, chairman & managing director, Knight Frank India, said, “In 2023, residential property demand in India’s major cities has surged to its highest level in a decade, despite the increase in mortgage rates and property prices. With significant tailwinds such as the expected reduction in interest rates and relatively strong economic growth, residential demand is anticipated to sustain momentum in 2024.”
Kevin Coppel, managing director at Knight Frank Asia-Pacific, said, “Ongoing constraints on the supply side, including input costs, labour shortages and construction delays, have played a role in supporting prices in numerous cities across the Asia-Pacific region. Notable performers such as Singapore, Sydney, Brisbane, Perth, Manila, Delhi and Bengaluru have benefited from factors like the wealth effect, demand exceeding supply, and optimistic economic growth prospects.”
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Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.
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