Mumbai Leads the Surge in Luxury Home Prices in India

According to the Prime Global Cities Index report, not only Mumbai but also Delhi and Bangalore have seen an uptick in the average annual prices of homes. This rise reflects a growing preference among consumers to upgrade their lifestyles through property investments.

Mumbai is Home to India's Priciest Real Estate

Mumbai, known for having the most expensive real estate market in India, witnessed a nearly 10% increase in residential property prices over the last year. The majority of these properties fall into the luxury category, with this price hike recorded from January to December 2023. The Prime Global Cities Index report reveals that alongside Mumbai, Delhi, and Bangalore have also experienced increases in average home prices.

Positioning in the Global Market

In the global rankings of the Prime Global Cities Index, Mumbai claims the third spot, with Delhi and Bangalore at 16th and 27th, respectively. Delhi saw a 4.2% annual increase in home prices, while Bangalore reported a 2.2% rise. The report attributes Mumbai's significant price growth primarily to India's improving economy and the affluent class's eagerness to invest in high-quality homes. Additionally, the country has seen about a 6.1% increase in the wealthy population, further influencing the demand in key Indian cities.

A Positive Outlook for Luxury Real Estate

Shishir Baijal, Chairman and Managing Director at Knight Frank India, noted, "The noticeable increase in luxury home prices underscores the continuous rise in demand across the country. With the economy on a positive trajectory and consumers seriously considering enhancing their lifestyles, India's prime real estate markets are showing optimistic signs. This trend is expected to continue, predicting further increases in home prices."

Global Leaders in Luxury Home Price Growth

The capital of the Philippines, Manila, topped the Prime Global Cities Index with an annual growth of 26.3% in residential property prices, attributed to an increase in foreign investment. Following closely, Dubai secured the second position, showcasing a rapid development with a 15.1% annual increase in home prices.

Analyzing Global Trends

The Prime Global Cities Index offers an analysis of changes in the prices of premium residential properties across 45 major cities worldwide. The report highlights an average increase of 3.7% in home prices across these cities, marking the highest growth rate recorded since the third quarter of 2022.