Mumbai ranks 22nd in Global Prime Cities Index by Knight Frank: According to Knight Frank, Mumbai was ranked 22nd in a global index that analyses annual price appreciation of premium residential properties. In its report on ‘Prime Global Cities Index Q3 (July-September) 2022’, Property consultant Knight Frank said that all three Indian cities: Mumbai, Bengaluru and New Delhi, registered an increase in average annual prices in the third quarter of 2022.
Key points in the report:
- The prime global cities index is a valuation-based index that tracks the movement of prime residential prices in local currency in 45+ locations around the world. Mumbai moved up to 22nd rank in the third quarter of 2022 from 39th rank in the year-ago period.
- Bengaluru’s rank also moved up to 27th as against 41st, while New Delhi’s position improved to 36th rank from 38th rank.
- According to the consultant, the price increase is due to strong market sentiment, appropriate affordability, still low loan rates compared to 2019, and a far more stable economic and business environment in relative to many developed economies.
- While increasing mortgage rates have weighed down prime residential markets globally, he said that the Indian prime residential market has been relatively strong and should be able to sustain the momentum till the end of 2022.
Prime Global Cities Index Q3: Globally
- The report further cited that Dubai recorded the fastest rise in prime prices with an 88.8 per cent increase during a 12-month change (Q3 2021- Q3 2022), while Wellington was the weakest performing market with a decline of 18 per cent.
- Some European cities registered strong performance in prime prices during Q3 2022. Zurich (10.7%), Edinburgh (9.9%), Berlin (9.4%), Dublin (8.6%), and Madrid (5.6%) have all risen the rankings in the last 12 months despite the drop-in sentiment and the slowdown in the Eurozone’s economy.