- New Delhi and Bengaluru record significant growth in prime residential properties
- Average annual prices rose 2.6% across the 44 residential markets
- Manila leads the Prime Global Cities index with 26% YoY growth
Mumbai, August 23, 2024: Knight Frank, the leading international property consultancy, in its recent report ‘Prime Global Cities Index Q2 2024’ noted that key residential markets of Mumbai, New Delhi and Bengaluru recorded a rise in their average annual prices of prime residential properties. Mumbai recorded a significant increase on the international index ranking second in terms of annual price growth, as a reflection of the surge in residential demand in the city, especially for prime properties. A similar trend was observed in New Delhi and Bengaluru, which also recorded price rise in the high-end and premium categories, once again, drive by higher demand. Demand has been particularly strong in the premium priced category becoming the strongest driver for overall sales so far during the year. The Prime Global Cities Index is a valuation-based index tracking the movement of prime residential prices across 44 cities worldwide. The index tracks nominal prices in local currency.
Across the 44 cities world-wide surveyed for this report, annual price growth slowed from 4.1% in Q1 to 2.6% in Q2 2024, remaining below the long-term average of 5.3%. The chart was topped by Manila which led with a 26% annual rise in Q2 2024. Dubai, after a 124% increase since 2020, saw slight moderation declining by 0.3% YoY, while Miami, up 77% since 2020, climbed 8% in the last year. Europe is also gained momentum, with six of the ten fastest-improving markets, led by Stockholm. Meanwhile, markets like Madrid, Dubai, and New Zealand (Christchurch, Wellington, and Auckland) are experiencing a slowdown in growth.
Indian markets remained a remarkable exception to the global story, with all the major markets remaining in growth mode for prime residences. Mumbai, with a YoY price rise of 13% in prime residences, recorded the second highest (YoY) growth in prime residential prices in Q2 2024, pushing it up the ranking table to 2nd position from its 6th rank in Q2 2023. New Delhi, which recorded a rise of 10.6% YoY in prime residential property prices, made a stupendous jump in rankings going from 26th in Q2 2023 to 3rd in Q2 2024. Bengaluru (3.7%) maintained status quo on rank 15th in Q2 2023 and Q2 2024. Being the largest residential markets of the country, the strong price growth in prime residential properties is a strong indicator of the growing wealth and increasingly higher aspirations of the country’s affluent population.
The Knight Frank Prime Global Cities Index Q2 2024 (Ranked by annual % Change)
| Rank | City | 12-month % change |
| 1 | Manila | 26.0 |
| 2 | Mumbai | 13.0 |
| 3 | Delhi | 10.6 |
| 4 | Los Angeles | 8.9 |
| 5 | Miami | 7.1 |
| 6 | Nairobi | 6.6 |
| 7 | Madrid | 6.4 |
| 8 | Lisbon | 4.7 |
| 9 | Seoul | 4.6 |
| 10 | San Francisco | 4.5 |
| 15 | Bengaluru | 3.7 |
| 42 | Vienna | -3.2 |
| 43 | Bangkok | -3.9 |
| 44 | Wellington | -5.9 |
Source: Knight Frank, Macrobond
The rise in global prime residential price index was recorded at 2.6 % across the 44 markets in the 12-month period ending June 2024.
Shishir Baijal, Chairman and Managing Director at Knight Frank India said, “The premium segment has been the primary driver of sales growth across the Indian market, and this is reflected in the price growth seen during Q2 2024. The increasing affluence of the wealthy and their need for lifestyle-oriented properties has fuelled the prime residential market. We expect this momentum to sustain in 2024, as the economic outlook continues to remain strong and keeps sentiments buoyant.”
Liam Bailey, Knight Frank’s Global Head of Research said “The slowing in price growth this quarter across global prime markets reflects the fact that, without further stimulus from rate cuts, the bounce in market pricing we have seen over the past few quarters is running out of steam. The biggest influence on future price growth lies in the hands of central banks and their confidence to cut rates further over the next 12 months.”