Mumbai records third highest price rise in Q1 2024: Knight Frank Prime Global Cities Index Q1 2024
“Mumbai’s significant rise on the international index was largely due to the rise in demand in the city. While the demand has been strong for all segments, we have seen a rise in the sale of higher-value products,” said Knight Frank.
Meanwhile, Bengaluru saw a slight drop in ranking from 16th place in Q1 2024 to 17th in Q1 2024. It recorded a 4.8% year-on-year increase in luxury residential prices.
“India’s main cities, notably New Delhi and Mumbai, have witnessed a surge in house prices driven by robust economic growth, as indicated by our findings, with annual GDP growth exceeding 8%,” the report added.
Shishir Baijal, Chairman and Managing Director at Knight Frank India said, “The strong demand trend for residential properties has been a global phenomenon, led by gateway markets of Asia-Pacific and EMEA. Like its peers in these regions, the improved rankings of Mumbai and New Delhi on the Prime Global Cities Index were underscored by the resilience in sales growth volume. We expect the momentum of sales to remain stable over the next few quarters as the economic conditions are likely to remain broadly unchanged.”
The global prime residential price index has seen a significant uptick, registering a 4.1% increase across 44 markets in the twelve months leading up to March 2024. This marks the fastest price growth rate since the third quarter of 2022.
The Knight Frank Prime Global Cities Index 2023 (ranked by annual % change)
| Rank | City | 12-month % change |
| 1 | Manila | 26.2 |
| 2 | Tokyo | 12.5 |
| 3 | Mumbai | 11.5 |
| 4 | Perth | 11.1 |
| 5 | Delhi | 10.5 |
| 6 | Seoul | 9.6 |
| 7 | Christchurch | 9.1 |
| 8 | Dubai | 8.6 |
| 9 | Los Angeles | 8.3 |
| 10 | Madrid | 7.6 |
| 17 | Bengaluru | 4.8 |
| 42 | Hong Kong | -2.8 |
| 43 | Berlin | -4.7 |
| 44 | Frankfurt | -6.9 ; |
Source: Knight Frank, Macrobond
Manila claims top spot in Prime Global Cities Index Q1 2024, sees 26.2% annual rise
Manila claimed the first spot in this ranking, boasting a 26.2% annual rise in residential prices for the quarter, the highest among all cities surveyed. According to findings from the Knight Frank report, this substantial surge can be attributed to two primary factors: a robust economic performance bolstering consumer confidence and purchasing power, and substantial investments in infrastructure within and around the city, which have further fueled demand.
Tokyo surged up the rankings, climbing 17 places with a robust 12.5% year-on-year increase, securing the second position in the latest index. The notable increase in luxury residential housing prices in Tokyo is attributed to two key factors outlined in a recent analysis. Firstly, Japanese banks offering exceptionally favorable mortgage terms have encouraged heightened investment in Tokyo’s real estate market. Secondly, a depreciation of the yen has further incentivized foreign investors to participate in the city’s property sector.
Liam Bailey, Knight Frank’s Global Head of Research said “The rebound in global housing markets is continuing, as evidenced by our Prime Global Cities Index reaching 4.1% annual growth. Rather than heralding a return to boom conditions, the index indicates that upwards price pressures are stemming from relatively healthy demand, set against continued low supply volumes. The pivot in rates – when it comes – will encourage more vendors into the market, leading to a welcome return to liquidity in key global markets.”
Released by Knight Frank, ‘The Prime Global Cities Index’ is a valuation-based index tracking the movement of prime residential prices across 46 cities worldwide.
