Prime residential or luxury property in Mumbai and New Delhi recorded an increase in their average annual prices while Bengaluru witnessed a slight drop in Q1 2024, according to the ‘Prime Global Cities Index Q1 2024’ report by Knight Frank.
The percentage increase in luxury property prices in Mumbai and New Delhi was higher than cities like Dubai, Los Angeles, Madrid, Hong Kong and Berlin in the last 12 months (See below).
According to the report, Mumbai’s significant rise on the international index was largely due to the rise in demand in the city. “While the demand has been strong for all segments, we have seen a rise in the sale of higher value products,” it said.
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Mumbai recorded the third highest year-on-year (YoY) growth in prime residential prices in Q1 2024, pushing it up the ranking table by 3 places to 3rd position from its 6th position in Q1 2023. NCR rose from 17th rank in Q1 2023 to 5th in Q1 2024 with a growth of 10.5% YoY.
However, Bengaluru observed a decline in ranking from 16th place in Q1 2024 to 17th rank in Q1 2024, even while it recorded a 4.8% YoY growth in residential prices.
Also Read: Is Luxury Investing becoming the new trend?
The report says that India’s main cities, notably New Delhi and Mumbai, have witnessed a surge in house prices driven by robust economic growth with annual GDP growth exceeding 8%.
Knight Frank Prime Global Cities Index Q1 2024
| Rank | City | 12-month % change |
| 1 | Manila | 26.2 |
| 2 | Tokyo | 12.5 |
| 3 | Mumbai | 11.5 |
| 4 | Perth | 11.1 |
| 5 | Delhi | 10.5 |
| 6 | Seoul | 9.6 |
| 7 | Christchurch | 9.1 |
| 8 | Dubai | 8.6 |
| 9 | Los Angeles | 8.3 |
| 10 | Madrid | 7.6 |
| 17 | Bengaluru | 4.8 |
| 42 | Hong Kong | -2.8 |
| 43 | Berlin | -4.7 |
| 44 | Frankfurt | -6.9 |
Source: Source: Knight Frank, Macrobond. (Ranked by annual % Change)
The rise in global prime residential price index was recorded at 4.1 % across the 44 markets in the 12-month period ending March 2024 where prices are rising at their fastest rate since the third quarter of 2022.
“The strong demand trend for residential properties has been a global phenomenon, led by gateway markets of Asia- Pacific and EMEA. Like its peers in these regions, the improved rankings of Mumbai and New Delhi on the Prime Global Cities Index was underscored by the resilience in sales growth volume. We expect the momentum of sales to remain stable over the next few quarters as the economic conditions are likely to remain broadly unchanged,” said Shishir Baijal, Chairman and Managing Director at Knight Frank India.
Manila claimed the top spot in the ranking with a 26.2% annual rise in prices which was the highest in the ranking this quarter.
Tokyo jumped 17 places up with 12.5% YoY growth and ranks 2nd in the index.
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.
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