Mumbai stood at 22nd rank in a global index that measures annual price appreciation of premium residential properties, according to Knight Frank. In its report on ‘Prime Global Cities Index Q3 (July-September) 2022’, Property consultant Knight Frank said that all three Indian cities: Mumbai, Bengaluru and New Delhi, registered an increase in average annual prices in the third quarter of 2022.
Key points in the report:
- The prime global cities index is a valuation-based index tracking the movement in prime residential prices in local currency across 45-plus cities worldwide.
- Mumbai moved up to 22nd rank in the third quarter of 2022 from 39th rank in the year-ago period.
- Bengaluru’s rank also moved up to 27th as against 41st, while New Delhi’s position improved to 36th rank from 38th rank.
- The consultant has attributed the rise in prices to strong market sentiment, adequate affordability, still low interest rates compared to 2019 and a much more stable economy and business environment relative to many developed economies.
- While increasing mortgage rates have weighed down prime residential markets globally, he said that the Indian prime residential market has been relatively strong and should be able to sustain the momentum till the end of 2022.
Prime Global Cities Index Q3: Globally
- The report further cited that Dubai recorded the fastest rise in prime prices with an 88.8 per cent increase during a 12-month change (Q3 2021- Q3 2022), while Wellington was the weakest performing market with a decline of 18 per cent.
- Some European cities registered strong performance in prime prices during Q3 2022. Zurich (10.7%), Edinburgh (9.9%), Berlin (9.4%), Dublin (8.6%), and Madrid (5.6%) have all risen the rankings in the last 12 months despite the drop-in sentiment and the slowdown in the Eurozone’s economy.