June 14, 2024: According to Knight Frank’s recent report, "Prime Global Cities Index Q1 2024," Mumbai and New Delhi saw an increase in their average annual property prices, while Bangalore experienced a slight dip in prices for prime residential or luxury homes during Q1 2024.
Mumbai made a significant leap on the international index, driven by rising demand across all segments, particularly for higher-value properties. This increased demand propelled Mumbai to the third highest year-on-year (YoY) growth in prime residential prices for Q1 2024, moving it up from sixth place in Q1 2023 to third place.
New Delhi also saw a notable improvement, climbing from the 17th rank in Q1 2023 to fifth in Q1 2024, with a 10.5% YoY growth in prime residential prices. Conversely, Bangalore's ranking slipped slightly from 16th in Q1 2023 to 17th in Q1 2024, despite recording a 4.8% YoY increase in residential prices.
The surge in house prices in major Indian cities, especially New Delhi and Mumbai, is attributed to strong economic growth, with the country's annual GDP growth exceeding 8%, as highlighted in the report.
The global prime residential price index saw a 4.1% rise across 44 markets in the 12 months ending March 2024, marking the fastest rate of increase since Q3 2022.
Shishir Baijal, chairman and managing director at Knight Frank India, stated, “The strong demand for residential properties has been a global trend, driven by key markets in the Asia-Pacific and EMEA regions. Similar to these areas, Mumbai and New Delhi's improved rankings on the Prime Global Cities Index reflect the resilience in sales growth volume. We anticipate that sales momentum will remain stable over the next few quarters, given that economic conditions are expected to stay largely unchanged.”
Manila secured the top position in the ranking with an impressive 26.2% annual rise in prices, the highest for this quarter. This growth is attributed to robust economic performance, which has boosted consumer confidence and purchasing power, along with significant infrastructure investments that have stimulated demand.
Tokyo saw a remarkable increase, climbing 17 places with a 12.5% YoY growth, ranking second on the index. This surge in house prices at the start of 2024 is due to favorable mortgage terms offered by Japanese banks and a depreciating yen, which has attracted foreign investment in Tokyo’s real estate market. Despite Japan’s overall population decline, Tokyo continues to experience net population growth due to migration from other parts of the country.
Liam Bailey, Knight Frank’s Global Head of Research, remarked, “The rebound in global housing markets is evident, with our Prime Global Cities Index reaching 4.1% annual growth. This indicates that the upward price pressures are driven by healthy demand amidst continued low supply volumes. When rates pivot, it will encourage more vendors to enter the market, leading to a welcome increase in liquidity in key global markets.”
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Ans 1. Malabar Hill, Cuffe Parade, Juhu, Bandra, and Worli are the most expensive localities in Mumbai, with property prices hovering at Rs 30,000-60,000 per sq ft.
Ans 2. Average apartment buying price and rent in Mumbai A 1 BHK apartment costs between INR 30,000 to 60,000 monthly. This Cost of living in Mumbai with rent depends on the property size, housing society, location, amenities, and property. Buying a 1 BHK property in Mumbai costs around INR 80 lakhs – Rs 1.5 crores.
Ans 3. Malabar Hill is renowned as one of the most affluent and exclusive neighbourhoods in Mumbai, with various factors contributing to its elevated cost of living.
Ans 4. Godrej Industries Pvt. The straightforward answer to the question of who owns most property in Mumbai would be Godrej Industries. This group stands as the largest private landowner in Mumbai today, boasting holdings of nearly 2,000 acres of mangroves located at Vikhroli, east of the Eastern Express Highway.
Ans 5. 8th position In Mumbai $1 million or ₹ 8.24 crore can now get you 1108 sq feet. Mumbai, India's financial hub, has emerged as one of the world's premier luxury real estate markets, securing the 8th position globally, according to Knight Frank's The Wealth Report 2024.