According to Knight Frank’s annual PIRI’s index, Mumbai has secured the 8th position in 2023, marking a significant leap from its previous rank of 37th in 2022. This exceptional jump reflects a remarkable 10% year-on-year growth in terms of annual luxury residential price rise. The city’s remarkable performance has propelled it into the esteemed group of the top 10 luxury residential markets worldwide.
Delhi Shows Steady Growth
In the latest PIRI’s index, Delhi has secured the 37th position with a 4.2% year-on-year increase in 2023. This growth is compared to its previous rank of 77th in 2022. Delhi’s noteworthy performance showcases a steady rise in luxury residential prices, consolidating its position as a promising market within the real estate industry.
Bengaluru Records Positive Growth
Among the major cities in India, Bengaluru has secured the 59th rank in the PIRI’s index 2023. This represents a slight improvement from its previous rank of 63rd in 2022. The city has recorded a 2.2% year-on-year increase, signaling a positive trend in luxury residential price growth.
Positive Trends in Prime International Residential Markets
Knight Frank’s The Wealth Report 2024 highlights the 3.1% growth in prices for the Prime International Residential Index (PIRI) 100 in 2023. This indicates overall strong gains in the luxury residential markets worldwide. Among the 100 luxury residential markets tracked, 80 witnessed either positive or neutral annual price growth. With a significant increase of 26%, Manila leads the rankings as the top luxury residential market, followed by Dubai at 16%. The Bahamas claims the third spot with a growth of 15%, while Algarve and Cape Town both recorded 12.3% growth, solidifying their positions in the top five.
Asia-Pacific Outperforms Americas
The Asia-Pacific region secured the title of the strongest-performing world region, surpassing the Americas. With a growth rate of 3.8%, Asia-Pacific claimed the top spot, while the Americas recorded a growth rate of 3.6%. Europe, the Middle East, and Africa trailed behind at 2.6%. Notably, sun locations outperformed city and ski resorts, witnessing an average growth of 4.7%. Ski resorts closely followed this trend with 3.3% growth, while prime prices in city markets rose by an average of 2.7%.
Bright Outlook for Mumbai
Looking ahead to 2024, Mumbai remains poised for further growth with a 5.5% forecasted increase in prime prices. This positions Mumbai as the second-ranking city among the 25 cities globally. India’s emergence as a prime luxury real estate destination strengthens its appeal to international investors.
Monaco Retains the Crown for Most Expensive Real Estate Market
In terms of real estate prices, Monaco continues to hold the title for the world’s most expensive market. In 2023, US$ 1 million could only purchase approximately 16 square meters of space. Hong Kong follows closely with 22 square meters and Singapore with 32 square meters. Despite high prices, Mumbai offers comparatively more space for the same amount, with 103 square meters available for US$ 1 million. However, this marks a reduction of 8.85% compared to the previous year when 113 square meters could be purchased. Delhi, on the other hand, offers 217 square meters, reflecting a reduction of 3.98% compared to 2022 when it stood at 226 square meters. Bengaluru saw a 2.12% reduction, with 377 square meters available in 2023 compared to 385 square meters in 2022. The trends highlighted in Knight Frank’s reports showcase the dynamic growth, positive prospects, and emerging opportunities in the luxury real estate markets in India and globally. These developments bode well for investors and stakeholders in the real estate industry, paving the way for continued growth and consolidation in the coming years.
