Mumbai Ranks 7th in Prime Global Cities Index Q4 2024

Mumbai Ranks 7th in Prime Global Cities Index Q4 2024

Mumbai has secured the 7th spot in the prestigious Prime Global Cities Index Q4 2024, according to Knight Frank’s latest report, reflecting a solid 6.1% year-on-year growth in prime residential property prices. This robust increase positions Mumbai as a key player in the global luxury real estate market, with its luxury homes continuing to attract affluent buyers seeking lifestyle upgrades.

The rise in prices underscores the growing demand for prime residential spaces in the city amidst a positive economic environment. The report highlights that Mumbai, along with New Delhi and Bengaluru, witnessed an upward trajectory in their prime residential markets during the past year. New Delhi, with a remarkable 6.7% annual price increase, has risen from 16th place in Q4 2023 to 6th place in Q4 2024. Bengaluru, too, demonstrated significant growth, leaping from 27th rank in Q4 2023 to 13th place in Q4 2024, recording a 4.1% rise in prices. Globally, the Prime Global Cities Index saw a 3.2% overall increase in prime residential prices across 44 markets in the 12 months leading up to December 2024. Of these, 34 cities reported positive growth, indicating a resilient luxury real estate market globally.

The top spot in the index was claimed by Seoul, with an impressive 18.4% annual price increase, despite political uncertainties. Manila ranked second with a 17.9% year-on-year growth. Shishir Baijal, Chairman and Managing Director at Knight Frank India, attributed the strong growth in India’s prime residential segment to a surge in demand driven by homebuyers prioritising lifestyle upgrades, supported by a stable economic outlook and favourable market sentiment. He noted that these trends are expected to continue, likely leading to further price increases in the near term. Liam Bailey, Knight Frank’s Global Head of Research, explained that while the path to lower rates has become more complex due to persistent inflation in developed economies, expectations of rate cuts in 2025 could lead to further growth in global house prices. The Prime Global Cities Index tracks the movement of prime residential prices in 44 cities, reflecting nominal prices in local currencies, and serves as a key indicator of the luxury real estate market’s health.