Mumbai and Delhi-NCR are among the top cities in the Asia Pacific region to record the highest annual price growth in the luxury housing segment. The financial capital secured the third spot and recorded a 11.5% YoY increase while Delhi took the fifth spot and reported a 6.5% rise in luxury property prices.
Bengaluru is ranked 7th with prime residential prices growing by 4.8% YoY in Q3 2024. The average price for the prime residential market in the city is recorded at $255 per sq ft, as per a report by Knight Frank titled Quality Life-ing: Mapping Prime Residential Hotspots.
Manila took the top spot and witnessed an increase of 29.2% in luxury property prices followed by Tokyo at 12.8%, the report showed.
Mumbai’s performance is in line with the performance of Indian stock markets. The investment sentiment remains very strong in the economy, and this is reflected in the growth of the equity indices which have scaled all-time highs, as well as the prime residential prices in this BFSI sector dominated city which saw equally strong price growth, the report showed.
Alongside Vietnam and Thailand, India is highlighted as one of the emerging markets in the region, driven by its strong economy, supportive policies, and improving infrastructure, it noted.
Mumbai 14th most expensive APAC city for prime residential properties
Mumbai is now the 14th most expensive APAC city for prime residential properties, with an average price of $953 per sq ft as of Q3 2024. $1 million can secure buyers approximately 103 sq m of luxury real estate in the city, the report showed.
Delhi-NCR, ranked 5th on the annual prime residential price growth index for APAC region, is the 19th most expensive market with an average price of $452 sq ft during Q3 2024.
Bengaluru is ranked 7th with prime residential prices growing by 4.8% YoY in Q3 2024. The average price for the prime residential market in the city is recorded at $255 per sq ft, the report showed.
Overall, prime residential prices in the APAC region rose for the sixth consecutive quarter at 2.9% year-on-year (YoY) in Q3 2024, with 14 out of 23 markets reporting stable or increasing prices. Manila and Tokyo have witnessed an annual price change of 29.2% and 12.8% respectively in their prime residential prices.
Momentum in the residential market in India has significantly increased in 2024, with Q3 recording the highest quarterly sales of 87,108 units, representing a 5% year-over-year (YoY) increase while the premium end of the market grew by a much steeper 41% YoY during the same period.
“India’s residential real estate sector is experiencing remarkable growth, fuelled by economic expansion, infrastructure advancements, and evolving consumer preferences. With Mumbai, Delhi NCR, and Bengaluru leading in prime residential price growth, the market is demonstrating resilience and establishing itself as a key hub for prime real estate investments. The interplay of a growing economy and evolving lifestyle aspirations positions India as a distinctive and attractive prospect for investment opportunities,” said Shishir Baijal, chairman and managing director, Knight Frank India.
Home ownership in the APAC region
Housing markets in the Asia-Pacific are broadly characterised by high home ownership aspirations amid persistent constraints in housing supply and sustained economic growth.
India has been cited as the market with the 3rd highest home ownership rate of 87%, just behind Singapore at 90% and Vietnam at 88%.
Also Read: Housing sales in Jan-Sep period touch 2.29 lakh units recording 17% growth year-on-year
Knight Frank’s Quality Life-ing Report has identified Asia-Pacific as a premier lifestyle and investment destination, with Singapore standing out for individuals considering relocation. Quality Life-ing: Mapping Prime Residential Hotspots report evaluates 15 prominent markets based on five leading indicators: Economy, Human Capital, Quality of Life, Environment, and Infrastructure and mobility.
