Mumbai records 3rd highest growth prime residential prices in December quarter
Mumbai's 10% price growth in the past 12 months driven primarily by affluent homebuyers looking for a lifestyle upgrade in the backdrop of a strong economic environment which continues to gain momentum.
Mumbai recorded the third highest year-on-year growth in prime residential prices during the quarter, pushing it up the ranking table by five places to 3rd position from its 8th position in December 2022.
National Capital Region (NCR) rose from 28th rank in fourth quarter of 2022 to 16th in December quarter of 2023 with a growth of 4.2% on-year. However, Bengaluru observed a decline in ranking from 20th place a year ago to 27th rank in December, even while it recorded a 2.2% on-year growth in residential prices.
“The strong growth in prime prices reflects the surge in demand seen in the residential segment across markets in India. With homebuyers increasingly prioritizing lifestyle upgrades, bolstered by the nation's stable economic outlook and positive market sentiment, this segment should likely see price levels continue to elevate in the near term,” said Shishir Baijal, CMD, Knight Frank India.
The rise in global prime residential price index was recorded at 3.7% across the 45 markets in the 12-month period ending December 2023. This is the strongest growth rate recorded since Q3 2022 with 82% of cities seeing growth on an annual basis.
“The biggest impact of the rate tightening cycle in the past 12-months has been on sales volumes, which have fallen in most markets by around 10% to 20%. While prices did
