Mumbai on 3rd spot on Prime Global Cities Index Q4 2023: Report

March 20, 2024: Mumbai recorded the third highest year-on-year (YoY) growth in prime residential prices in the fourth quarter of financial year 2022-23 (Q42023), global property advisor Knight Frank’s Prime Global Cities Index Q4 2023 shows. This price growth pushed the Maximum City’s ranking by 5 places to the 3^rd position from its 8^th position in Q42022, the company said.

Manila claimed the top spot in the ranking with a 26.3% annual rise in prices. The capital city’s performance is attributed to strong domestic and foreign investments. Dubai with 15.1% YoY growth ranks 2^nd in the index.

Mumbai‘s impressive 10% price growth in the past 12 months is driven primarily by affluent homebuyers looking for a lifestyle upgrade in the backdrop of a strong economic environment which continues to gain momentum, it said.

The Prime Global Cities Index is a valuation-based index tracking the movement of prime residential prices across 45 cities worldwide. The index tracks nominal prices in local currency.

The report also said that New Delhi and Bangalore, the other two Indian cities considered for the study, also recorded an increase in their average annual prices of prime residential or luxury homes in Q42023.

In the list, the NCR rose from the 28^thrank in Q4 2022 to the 16^{th spot}in Q4 2023, with growth of 4.2% YoY. While it recorded 2.2% YoY growth in residential prices, Bangalore saw a decline in ranking from 20^th place in Q4 2022 to 27^th rank in Q4 2023.

Knight Frank Prime Global Cities Index Q4 2023 (Ranked by annual % change)

Rank	City	12-month % change
1	Manila	26.3
2	Dubai	15.1
3	Mumbai	10.0
4	Shanghai	8.6
5	Los Angeles	8.2
6	Vancouver	7.2
7	Christchurch	6.8
8	Miami	6.5
9	Madrid	6.4
10	Seoul	6.2
16	Delhi	4.2
27	Bengaluru	2.2
28	Berlin	2.2
29	San Francisco	1.8

Source: Knight Frank Research

The rise in global prime residential price index was recorded at 3.7% across the 45 markets in the 12-month period ending December 2023. This is the strongest growth rate recorded since Q3 2022 with 82% of cities seeing growth on an annual basis.

Shishir Baijal, chairman and managing director at Knight Frank India, said, “The strong growth in prime prices is a reflection of the surge in demand seen in this residential segment across markets in India. With homebuyers increasingly prioritizing lifestyle upgrades, bolstered by the nation’s stable economic outlook and positive market sentiment, this segment should likely see price levels continue to elevate in the near term.”

Liam Bailey, Knight Frank’s Global head of research, said: “The biggest impact of the rate tightening cycle in the past 12 months has been on sales volumes, which have fallen in most markets by around 10% to 20%. While prices did initially fall as rates rose in 2022, as supply has been squeezed prices have ticked up. Rate cuts in the second half of 2024 will add further impetus to the market.”

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Sunita Mishra

An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.

In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
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