Mumbai becomes 18th most expensive city

Mumbai becomes 18th most expensive city

Mumbai‘s rank has improved to 37th from 92nd in a global list of movement in prices of luxury homes as the city saw an appreciation of 6.4 per cent during 2022 calendar year, according to Knight Frank India. In a virtual conference, property consultant Knight Frank on Wednesday released its ‘The Wealth Report 2023’.

“The value of Prime International Residential Index (PIRI 100) that tracks the movement in luxury house prices across the world increased by 5.2 per cent YoY (year-on-year) in 2022,” Knight Frank said.

In the report, the consultant has analysed prime property price performances in 100 cities, and sun and ski locations globally. Out of 100, 85 locations recorded positive or flat price growth in 2022.

“Globally, Mumbai’s prime property market has witnessed a price appreciation of 6.4 per cent which moves up the city to 37th position on the PIRI 100 in 2022 as opposed 92nd in 2021,” the consultant said.

Prime properties in Mumbai are expected to witness an appreciation of 3 per cent in 2023.

In Bengaluru, the prices of prime property rose 3 per cent, helping the city improve its rank to 63rd in 2022 from 91st in 2021.

“Delhi’s prime property market saw value appreciating by 1.2 per cent which moved up the ranking to 77th from 93rd in 2021,” the consultant said. As per the report, the prime residential prices in Dubai accelerated 44.2 per cent in 2022, maintaining its position at the top of Knight Frank’s PIRI 100 and cementing its status as a global hub for ultra-high-net-worth individuals (UHNWIs), assisted by numerous visa incentives.

Aspen ranks 2nd with 27.6 per cent growth in prices, followed by Riyadh (25 per cent), Tokyo (22.8 per cent), Miami (21.6 per cent), Prague (16.3 per cent), Algarve (15.3 per cent), Bahamas (15 per cent), Athens 13 per cent and Porto (12.7 per cent).

According to the report, Monaco continues its reign as the world’s most expensive city where USD 1 million can get you 17 square metres of space, followed by Hong Kong (21 square metres) and New York (33 square metres) in 2022.

“Comparatively in Mumbai, one can purchase 113 square metres of prime residential real estate, making the city affordable by 13 per cent (in dollar terms) since 2018. Mumbai is the 18th most expensive prime residential market in the world,” the report said.

In Delhi, one can purchase space of 226 square metres and 385 square metres in Bengaluru of prime residential real estate, with an increase of 12.43 per cent and 71.87 per cent respectively since 2018.

Knight Frank India CMD Shishir Baijal said, “The Indian residential markets have shown growth in demand for the last many quarters leading to a rise in values. We also note that the prime residential market in India has seen a rise in sales momentum of high-end properties.”

Mumbai ranked second amongst APAC markets, after Tokyo, with a 6.4 per cent YoY rise in values even as other markets in the region saw declining values.

“India is also one of the few large economies that has continued its growth momentum since the start of the post-pandemic recovery while many other locations face fresh economic challenges,” Baijal said.

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