Driven by a surge in demand for residential and luxury properties, Mumbai has ascended to the second spot in the latest Prime Global Cities Index, published by property consultancy firm Knight Frank.
The index tracks the prices of prime residential properties across 44 cities worldwide. The latest report indicates a slowdown in annual price growth, dropping from 4.1 per cent in the first quarter to 2.6 per cent in the second quarter of 2024, below the long-term average of 5.3 per cent.
In contrast to global trends, Indian cities have shown exceptional performance. Mumbai recorded a 13 percent year-on-year increase in prime residential prices, making it the second fastest-growing city globally in Q2 2024, up from sixth place in Q2 2023.
The report reveals similar trends in New Delhi and Bengaluru. New Delhi saw a 10.6 percent increase in prime residential prices, jumping from 26th place in Q2 2023 to third in Q2 2024. Bengaluru, maintaining its position at 15th place, recorded a 3.7 percent increase.
“The premium segment has been the primary driver of sales growth across the Indian market, and this is reflected in the price growth seen during Q2 2024. The increasing affluence of the wealthy and their need for lifestyle-oriented properties has fuelled the prime residential market” said Shishir Baijal, Chairman and Managing Director at Knight Frank India.
Globally, Manila led the index with a 26 percent annual price increase in Q2 2024. Dubai, despite a 124 percent rise since 2020, saw a slight decline of 0.3 percent year-on-year. Miami, which has risen 77 percent since 2020, recorded an 8 percent increase over the past year.
European markets also showed momentum, with Stockholm leading the way. However, cities such as Madrid, Dubai, and those in New Zealand, including Christchurch, Wellington, and Auckland, are experiencing a slowdown in growth.
Liam Bailey, Knight Frank’s Global Head of Research, said: “The slowing in price growth this quarter across global prime markets reflects the fact that, without further stimulus from rate cuts, the bounce in market pricing we have seen over the past few quarters is running out of steam.”
(With ANI input)