Mumbai and Delhi Named Among Asia-Pacific’s Top Prime Residential Markets: Knight Frank Report
Mumbai and Delhi have stood out in Asia-Pacific’s prime residential market, as per a recent Knight Frank report. Ranked third and fifth, respectively, on the annual prime residential price growth index, these cities reflect India’s rising presence in the luxury real estate sector. The report also highlighted India, along with Vietnam and Thailand, as emerging markets showing strong growth.
Mumbai: Preferred for Luxury Real Estate
Mumbai has secured the third position on Knight Frank's prime residential price growth index, with luxury property prices rising by 11.5% year-on-year in Q3 2024. This strong performance aligns with the broader bullish trend in India's stock markets, which have hit record highs, reflecting robust investor sentiment.
- Investor Confidence: Mumbai’s luxury market mirrors the optimism in the Indian equity markets, where soaring stock indices reflect strong economic momentum.
- BFSI Sector Dominance: As a hub for the banking, financial services, and insurance (BFSI) sectors, Mumbai continues to fuel demand for premium housing.
- Global Standing: Mumbai is ranked 14th among APAC’s most expensive prime residential markets, with an average price of USD 953 per square foot. For investors, USD 1 million can secure approximately 103 square feet of prime real estate in the city.
Delhi: Steady Growth and Increasing Demand
Delhi, ranked fifth on the index, reported a 6.5% annual rise in luxury property prices in Q3 2024. Known for its combination of heritage and modernity, the city continues to attract affluent buyers seeking exclusivity and high-end living.
- Affordability in Prime Markets: Delhi is positioned as the 19th most expensive prime residential market in APAC, with an average price of USD 452 per square foot.
- Resilient Growth: Delhi’s luxury housing market has demonstrated consistent growth, supported by its political significance and affluent neighborhoods.
India’s Residential Real Estate Market: A Broader Perspective
The residential real estate market in India is experiencing widespread growth, supported by economic progress, infrastructure improvements, and rising demand in cities like Mumbai, Delhi, and Bengaluru.
- Sales Surge: In Q3 2024, residential sales in India reached 87,108 units, marking a 5% year-on-year increase.
- Premium Segment Boom: The luxury and premium housing segments have experienced significant growth, with sales in this category increasing by 41%.
- High Home Ownership Rates: India’s 87% homeownership rate places it just below Singapore (90%) and Vietnam (88%) in Asia, signaling a strong desire for property ownership.
Economic Drivers of Indian Real Estate
Infrastructure Improvements:
Urban connectivity projects and modern infrastructure are enhancing property values in key cities. Improved transport networks, airports, and smart city initiatives are boosting the demand for residential and commercial properties.
Changing Lifestyle Aspirations:
Rising wealth and changing consumer preferences for luxury living spaces are fueling the surge in demand for premium properties. The desire for upscale homes, equipped with modern amenities and better living standards, is reshaping the real estate market.
The Resilience of the Asia-Pacific Prime Market
Despite challenges like the pandemic and rising interest rates, the prime residential sector in the Asia-Pacific region remains robust, driven by key factors:
- Strong Homeownership Aspirations: Across the region, owning a home is a significant aspiration. Buyers are increasingly seeking luxury properties that align with their lifestyle and offer financial benefits.
- Limited Supply: The high demand for luxury homes, combined with limited supply, has led to an increase in property prices in prime residential markets
Way Forward for Indian Real Estate
Mumbai and Delhi are leading the way in India’s luxury real estate sector, positioning the country as an emerging global investment hub. These cities continue to attract both domestic and international investors, driven by a robust economy, infrastructure advancements, and shifting lifestyle aspirations. With increasing demand for upscale properties, India is firmly establishing itself as a prime destination for high-net-worth individuals seeking lucrative returns and a sophisticated lifestyle. The outlook for India’s prime residential market remains strong, with sustained growth anticipated in the coming years.
