Even though average property prices in some of the world’s leading cities is on a decline, they continued to grow in all three prime residential markets during the July-September period of 2022 (Q3CY2022), data available with global property brokerage firm Knight Frank show.
According to the Prime Global Cities Index Q3 2022, average property values in India’s financial capital Mumbai increased 4.8% annual growth. When compared to the same period last year, Bangalore saw average property values appreciating 3.3% while the growth was 1.2% for New Delhi, the index showed.
The report attributed the positive growth to strong buyer sentiment, comparative affordability and general policy environment. “Some of the factors supporting price growth are strong market sentiment, adequate affordability, still low interest rates compared to 2019 and a much more stable economy and business environment relative to many developed economies,” the report said.
“India continues to distinguish itself as one of the most resilient large economies of the world and market sentiments remain strong. While increasing mortgage rates have weighed down prime residential markets globally, the Indian prime residential market has been relatively strong and should be able to sustain the momentum till the end of 2022,” says Shishir Baijal, CMD, Knight Frank India.
The Prime Global Cities Index is a valuation-based index tracking the movement in prime residential prices in local currency across 45+ cities worldwide, using Knight Frank’s global research network.
Globally, the index recorded average annual growth of 7.5% in Q3 2022, down from a peak of 10% in Q1 2022. However, at 7.5%, annual growth still sits above the index’s average five-year growth rate of 4.4%. Six cities registered a double-digit price growth while 19 cities witnessed a decline in residential prices between July and September 2022.