Mumbai ranks 2nd, New Delhi 3rd in global property price index; Manila tops the list

The Prime Global Cities Index is a valuation-based index tracking the movement of prime residential prices across 44 cities worldwide. The index tracks nominal prices in local currency. 

Knight Frank, an international property consultancy, in its recent report ‘Prime Global Cities Index Q2 2024’ noted that key residential markets of  Mumbai, and New Delhi have recorded an increase in the annual property prices with the the country’s financial capital witnessing an increase of 13% YoY followed by New Delhi at 10.6% YoY. Manila saw housing prices increase by 26% YoY.

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Mumbai, with a YoY price rise of 13% in prime residences, recorded the second highest (YoY) growth in prime residential prices in Q2 2024, pushing it up the ranking table to 2nd position from its 6th rank in Q2 2023. New Delhi, which recorded a rise of 10.6% YoY in prime residential property prices, made a jump in rankings going from 26th in Q2 2023 to 3rd in Q2 2024, the analysis showed. 

Bengaluru maintains status quo, ranked 15th in the list

Bengaluru (3.7%) maintained status quo on rank 15th in Q2 2023 and Q2 2024. Being the largest residential market in the country, the strong price growth in prime residential properties is a strong indicator of the growing wealth and increasingly higher aspirations of the country’s affluent population, the Knight Frank analysis showed. 

Demand has been particularly strong in the premium priced category becoming the strongest driver for overall sales so far during the year. 

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Across the 44 cities world-wide surveyed for this report, annual price growth slowed from 4.1% in Q1 to 2.6% in Q2 2024, remaining below the long-term average of 5.3%, it showed. 

Manila topped the charts with a 26% annual rise in Q2 2024. Dubai, after a 124% increase since 2020, saw slight moderation declining by 0.3% YoY, while Miami, up 77% since 2020, climbed 8% in the last year. Europe has also gained momentum, with six of the ten fastest-improving markets, led by Stockholm. Meanwhile, markets like Madrid, Dubai, and New Zealand (Christchurch, Wellington, and Auckland) are experiencing a slowdown in growth, the report showed.

The rise in global prime residential price index was recorded at 2.6 % across the 44 markets in the 12-month period ending June 2024. 

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“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. We expect this momentum to sustain in 2024, as the economic outlook continues to remain strong and keeps sentiments buoyant,” said Shishir Baijal, Chairman and Managing Director at Knight Frank India. 

Without further stimulus from rate cuts, is the bounce in market pricing running out of steam?

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. 

“The biggest influence on future price growth lies in the hands of central banks and their confidence to cut rates further over the next 12 months,” he said.

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