Mumbai climbs to 6th rank from 38th in annual housing price appreciation across 46 cities globally: Report

Mumbai ranks 6th among 46 cities globally in terms of annual price growth of high-end residential properties, with appreciation of 5.5 per cent, according to Knight Frank.

Real estate consultant Knight Frank India, in its report 'Prime Global Cities Index Q1 2023' said that Mumbai, Bengaluru, and New Delhi have registered an increase in average annual prices in January-March 2023.

"Mumbai moved up from the 38th rank in Q1 2022 to the 6th rank in Q1 2023 based on the annual growth in high-end or prime properties," the consultant said in a statement. Bengaluru and New Delhi also witnessed an upward movement in index ranking to 16th and 22nd ranks from their previous 37th and 39th ranks, respectively, in the first quarter of 2022 calendar year.

"The rise in average prices in Mumbai was recorded at 5.5 per cent year-on-year (YoY), while it was 3 per cent YoY in Bengaluru and 1.2 per cent YoY in New Delhi, compared to Q1 2022," it said. Dubai clinched the top position globally with an increase of 44.2 per cent in prime residential properties values.

The Prime Global Cities Index is a valuation-based index tracking the movement of prime residential prices across 46 cities worldwide. The index tracks nominal prices in local currency.

Mumbai's significant rise on the international index was largely due to the rise in demand in the city, the consultant attributed. While the demand has been strong for all segments, the consultant said it has seen a rise in the sale of higher value products.

Knight Frank India CMD Shishir Baijal said, "The Indian economy stood out with steady performance despite concerns around global growth and inflation that marked most of 2022." However, he said the Indian real estate markets displayed continued momentum in demand, amid concerns of an inflationary environment and weathered a steep rise in home loan rates over the past 12 months.

"Particularly, we have seen demand for prime residential property being maintained largely due to three factors: firstly, these set of consumers are less dependent on mortgage support; secondly, the continuous growth in economy has led to an increase and stability in income; and lastly, the prolonged trend of buying larger homes," Baijal said.