London-based property consultant, Knight Frank, has recently unveiled its Global Prime Residential Index, providing insight into the performance of various cities across the world in the residential real estate market. In the latest report for Q2 2023, Mumbai, Bengaluru, and New Delhi have showcased impressive growth, securing notable positions on the index.
Mumbai: A Spectacular Rise to the 19th Position
- With an astonishing annual percentage change of six percent, Mumbai has ascended 76 places to secure the 19th position on the index, a significant improvement from its 95th position in Q2 2022.
- This puts Mumbai at the top among Indian cities in terms of percentage increase on the global index. In Q2 2023, Mumbai experienced a residential price appreciation of six percent year-on-year.
Bengaluru: A Strong Second
- Bengaluru, known as India’s Silicon Valley, stands as the second-highest ranked Indian city on the index.
- The city has moved up to the 22nd position from the 77th spot in Q2 2022, showcasing the strong growth it has witnessed.
- In Q2 2023, Bengaluru recorded a residential price appreciation of 5.3 percent year-on-year, reflecting its growing appeal to real estate investors and homebuyers.
New Delhi: Climbing the Global Ladder
- New Delhi, the national capital of India, secured the 25th position on the Global Prime Residential Index.
- It has climbed 65 places from its 90th rank in Q2 2022, a significant improvement.
- In Q2 2023, New Delhi exhibited a residential price appreciation of 4.5 percent year-on-year, highlighting the city’s steady growth in the real estate market.
Chennai and Kolkata: Rising Stars
- Chennai and Kolkata, two other major Indian cities, have also made considerable strides in the index. In Q2 2023, they ranked 4th and 5th, respectively, among Indian cities and globally stood at the 39th and 40th positions.
- Both cities saw a price appreciation of 2.5 percent each year-on-year, a noteworthy increase from their positions in the previous year when they ranked much lower, at 107th and 114th globally.
Global Trends in Residential Price Growth
- Knight Frank’s Global Residential Cities Index for Q2 2023 indicates that residential price growth across the 107 world cities has slowed.
- It fell to 1.7 percent year-on-year from 11.7 percent year-on-year in Q2 2022. This decline is more pronounced than the first wave of the pandemic, which saw growth dip to 2.9 percent in Q2 2019.
India’s Real Estate Market: A Glimpse into the Future
The latest Global Prime Residential Index by Knight Frank sheds light on the dynamic real estate market in India and provides a glimpse into the evolving landscape of global property investments. With cities like Mumbai, Bengaluru, and New Delhi making significant strides, it’s evident that the Indian real estate sector is poised for a promising future.
Key takeaways for competitive examinations
- Global Head of Research at Knight Frank: Liam Bailey
- Chairman and Managing Director of Knight Frank India: Shishir Baijal