In a recent release of the Prime Global Cities Index by Knight Frank India for the third quarter of 2023, Manila emerged as the frontrunner, experiencing an impressive annual price increase of 21.2 percent. This remarkable performance in Manila is attributed to robust domestic and foreign investments in the region. Notably, the Mumbai real estate market secured the fourth position in the Prime Global Cities Index.
The Prime Global Cities Index is a comprehensive valuation-based benchmark that monitors the fluctuations in prime residential property prices across 46 major cities worldwide.
Mumbai displayed the fourth-highest year-over-year growth in prime residential prices for Q3 2023. The city saw a significant surge of 6.5 percent in prime residential property prices, propelling it up the rankings by a notable 18 positions compared to its standing at 22nd in Q3 2022. Following closely behind, Delhi clinched the tenth spot in the rankings, while Bengaluru secured the 17th position, showcasing positive growth in their index rankings, as reported by Knight Frank India.
Furthermore, the National Capital Region (NCR) made a remarkable leap from its 36th position in Q3 2022 to the 10th spot in Q3 2023, boasting a year-over-year growth rate of 4.1 percent. Bengaluru also observed a surge in its rank, moving from 27th in Q3 2022 to the 17th spot in Q3 2023, with a year-over-year growth rate of 2.2 percent.
The Knight Frank India report highlighted that the average annual increase in prime residential property prices across the 46 global markets for the 12-month period ending in September 2023 stood at 2.1 percent. This growth rate represents the strongest performance recorded since Q3 2022 and underscores the fact that 67 percent of the cities experienced annual growth.
Shishir Baijal, Chairman and Managing Director at Knight Frank India, noted, “The robust price trend in the upper end of the market coupled with strong sales momentum has elevated Mumbai’s position in this global ranking scale. Sales momentum is significantly stronger in the higher ticket sizes today than it has been in the past five years.” He further added, “The homebuyers’ increasing need to upgrade their lifestyle, coupled with stable economic prospects of the country and improving market sentiments should sustain price growth in the short to medium term.”
Meanwhile, Manila retained the top position in the ranking with an astounding 21.2 percent annual rise in prices, driven by substantial domestic and foreign investments. In a noteworthy development, Dubai, which had held the top position for eight consecutive quarters, slipped from its perch with an annual growth rate of 15.9 percent, primarily due to a sharp decline in quarterly growth from 11.6 percent in Q2 to a mere 0.7 percent in Q3. In contrast, San Francisco emerged as the weakest performing market, recording a decline of 9.7 percent year-over-year, according to the report.
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