Mumbai and Delhi Achieve Double-Digit Real Estate Price Growth, Ranked 3rd and 5th Globally

Real Estate Price Surge in Mumbai and Delhi: Ranked 3rd and 5th Globally

Mumbai and New Delhi have experienced a sharp annual increase in real estate prices in the first quarter of 2024, according to a report by the London-headquartered global property consultancy firm Knight Frank.

Bengaluru's Modest Increase

In Bengaluru, the average real estate prices witnessed a modest 4.8 percent rise in prime residential or luxury homes during the January-March quarter of 2024.

Mumbai's Significant Growth

According to the Knight Frank report titled ‘Prime Global Cities Index Q1 2024’, Mumbai's significant rise on the international index was largely due to increased demand in the city. While demand has been strong across all segments, there has been a notable rise in the sale of higher value properties.

Mumbai recorded the third highest year-on-year growth in prime residential prices in Q1-2024, moving up the ranking table by three places to 3rd position from its 6th position in Q1-2023.

Delhi's Rise

Delhi NCR rose from 17th rank in Q1-2023 to 5th in Q1-2024 with a 10.5 percent annual growth. However, Bengaluru observed a slight decline in ranking from 16th place in Q1-2023 to 17th rank in Q1-2024, despite recording a 4.8 percent yearly growth in residential prices.

Economic Growth Impact

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 percent in the financial year 2023-24.

Global Comparisons

Manila, the capital city of the Philippines, claimed the top spot in the ranking with a 26.2 percent annual rise in prices. This growth, as per the Knight Frank report, can be attributed to increased purchasing power and substantial infrastructure investments within and around the city.

Tokyo in Japan jumped 17 places up with 12.5 percent yearly price growth, ranking 2nd in the index. Despite Japan’s overall population decline, Tokyo sustains a net population growth due to migration from other regions within the country.

Expert Insights

Shishir Baijal, Chairman and Managing Director at Knight Frank India, said, “The strong demand trend for residential properties has been a global phenomenon, led by gateway markets of Asia-Pacific and EMEA (Europe, Middle East, and Africa).”

“Like its peers in these regions, the improved rankings of Mumbai and New Delhi on the Prime Global Cities Index were 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.”

Prime Global Cities 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.