Mumbai, Delhi Luxury Real Estate Among Top 5 Globally: Knight Frank

Over the past year, luxury real estate prices in Mumbai surged by 11.5%, positioning the city as the third highest globally, just behind Manila and Tokyo.

Meanwhile, Delhi experienced a 10.5% increase in prime residential prices, securing the fifth spot on Knight Frank's Prime Global Cities Index, which ranks cities based on annual changes in property prices.

Unlike the financial and national capitals of India, Bengaluru experienced a decline in luxury home prices.

Manila leads with a remarkable 26.2% annual growth, followed by Tokyo at 12.5%. Perth holds the fourth spot with an 11.1% increase.

Knight Frank reported on Thursday that India is experiencing robust economic growth, with its annual GDP growth exceeding 8%. This economic surge has resulted in increased housing prices in major cities, particularly Delhi and Mumbai, as confirmed by their findings.

In Q1 FY24, Mumbai's ranking improved by three positions compared to the same period in FY23. Delhi saw an even larger jump, moving from 17th to 5th place. On the other hand, Bengaluru's ranking slightly declined from 16th to 17th, despite an annual growth of 4.8% in luxury residential prices.

"The trend of strong demand for residential properties is evident globally, particularly in key markets across Asia-Pacific, Europe, the Middle East, and Africa. Similar to its counterparts in these regions, the enhanced rankings of Mumbai and Delhi on the prime global cities index highlight a resilience in sales growth volume.

We anticipate that sales momentum will remain steady in the coming quarters, as economic conditions are expected to remain stable," the report stated.

Anarock, another property consultant, supported this perspective. In a recent report, they noted, "Over the past decade, there were times when the supply of real estate surpassed demand, leading to stable price growth that aligned with inflation before the pandemic.

From 2013 to 2020, the top seven cities saw a cumulative supply of 2.355 million units against a demand for 2.068 million units.

Over time, demand grew in step with new supply. Available inventory reached approximately 800,000 units by the end of 2016. However, post-pandemic, the residential real estate market experienced a swift recovery, resulting in significant price increases that have outpaced general inflation."