Mumbai Ranks High on Global Cities Index

Mumbai has shown extraordinary growth on the Prime Global Cities Index, rising by 18 places to occupy fourth place.

According to a recent Knight Frank report ‘Prime Global Cities Index Q3 2023’, Mumbai, Bengaluru, and New Delhi, all the 3 Indian cities considered for the study recorded an increase in average annual prices of prime residential or luxury homes in Q3 2023. Mumbai recorded the fourth-highest YoY growth in prime residential prices in Q3 2023. The 6.5% increase in prime residential prices has moved the city up by 18 places from 22^nd rank in Q3 2022.  New

Delhi and Bengaluru too recorded an upward movement in their index rankings. NCR moved from 36^th rank in Q3 2022 to 10^th in Q3 2023 with a growth of 4.1% YoY. Bengaluru’s rank increased from 27^th rank in Q3 2022 to 17^th rank in Q3 2023 with a YoY growth of 2.2%.

Knight Frank Prime Global Cities Index Q3 2023 (Ranked by Annual % Change)

Source: Knight Frank Research

Note: all data to Q3 2023, except Miami, Los Angeles and San Fransico which are as at Q2 2023

Source: All data comes from Knight Frank’s global network with the exception of Tokyo (Ken Corporation); New York (StreetEasy); Los Angeles, Miami and San Francisco (S&P CoreLogic Case-Shiller); Berlin and Frankfurt (ZIEGERT Research/ ImmobilienScout 24); Stockholm (Svensk Maklarstatistik); Toronto (Real Estate Board of Toronto); Vancouver (Vancouver Real Estate Board); Zurich and Geneva (Wüest Partner).

The average rise in annual prime residential prices was recorded at 2.1% across the 46 markets in the 12-month period ending September 2023. This is the strongest growth rate recorded since Q3 2022 and reflects 67% of cities seeing growth on an annual basis.

 Shishir Baijal, Chairman and Managing Director at Knight Frank India said, “The robust price trend in the upper end of the market coupled with strong sales momentum has elevated Mumbai’s position in this global ranking scale. Sales momentum is significantly stronger in the higher ticket sizes today, than it has been in the past five years. The homebuyers’ increasing need to upgrade their lifestyle, coupled with stable economic prospects of the country and improving market sentiments should sustain price growth in the short to medium term.”

Manila claimed the top spot in the ranking with a 21.2% annual rise in prices. Manila’s performance is attributed to strong domestic and foreign investments. Dubai, with its 15.9% annual growth, has been displaced from the top position for the first time in eight quarters due to a sharp decline in quarterly growth from 11.6% in Q2 to 0.7% in Q3. San Francisco was the weakest-performing market with a decline of 9.7% YoY. The Prime Global Cities Index is a valuation-based index tracking the movement of prime residential prices across 46 cities worldwide. The index tracks nominal prices in local currency.

Liam Bailey, Knight Frank’s Global Head of Research said “The improvement in average annual house price growth will be welcomed by prime market homeowners but shouldn’t be overstated. Higher rates mean we have moved into a world of lower asset price growth – and investors will need to work harder to identify opportunities for outperformance to secure target returns.”