Prime Property Prices Surge in Mumbai, Delhi: Report

Amidst global uncertainties and financial headwinds, India's robust economy continues to display signs of strength. The first quarter (Q1) of 2024 has seen significant growth in prime residential property prices among the top 44 cities worldwide, with Mumbai and Delhi leading the charge.

The latest data from Knight Frank’s 'Prime Global Cities Index Q1 2024' reveals an impressive surge in property prices across Indian cities during the January–March quarter. Mumbai witnessed an astounding year-on-year increase of 11.5 percent, making it one of the highest jumps among Indian cities. Delhi was not far behind, with a commendable annual house price growth rate of 10.5 percent.

Manila topped this chart globally with an exceptional annual growth rate of 26.2 percent, followed by Tokyo at a solid 12.5 percent.

As stated in the report, "Indian cities are experiencing strong growth, with Mumbai at 11.5% and Delhi at 10.5%. This is largely due to India's thriving economy, which boasts an over-8 percent GDP growth rate annually."

This robust economic performance has stimulated house prices across all major Indian metros, but more so in Delhi and Mumbai, as indicated by these figures.

Across all markets covered by Knight Frank’s Prime Global Cities Index, Q1 saw average annual growth rates rise to around four percent, marking it as one of the strongest since Q3 back in late 2022.

When analyzing quarterly trends, there were clear indications that price escalation showed no sign of slowing down anytime soon; on the contrary, it seemed only to be gathering momentum as we moved into the second quarter (Q2). A noticeable uptick was observed from just a modestly positive figure (0.3%) for the last quarter ending December 2023 to a more encouraging 1.1% for Q1 2024.

Knight Frank's global head of research, Liam Bailey, commented on these findings: "Rather than heralding a return to boom conditions, the index indicates that upward price pressures are stemming from relatively healthy demand set against continued low supply volumes."

He further added, "Despite the economic challenges, many cities have shown a surprising level of resilience in their prime residential markets."

These figures indicate India’s property market is showing no signs of slowing down and continues to be one of the most attractive investment options for both domestic and international investors. The consistent growth in prices across major Indian metropolises such as Delhi and Mumbai signifies not only an increase in wealth, but also an increase in consumers' confidence in investing in the real estate sector.

In conclusion, it appears that despite global financial turbulence, India remains resilient, with its robust economy providing ample support to maintain strong growth rates within its prime residential property market. With promising forecasts ahead for Q2 2024, this trend seems likely to continue unabated well into the near future, so watch this space!