In Mumbai, Rs 8 crore can buy 1100 sq ft of prime residential space; down by 8% YoY: Wealth Report 2024

Mumbai, which ranked eighth in the global Prime International Residential Index (PIRI), stood in India's most expensive real estate market where $1 million or Rs 8.24 crore can buy 1108 sq feet of prime residential space, down by 8.85 percent YoY compared to 1216 sq ft in 2022, according to Knight Frank Wealth report 2024.

Comparatively in Delhi, one can purchase 2335 sq ft which accounts for a reduction of 3.98 percent from 2432 sq ft in 2022. Bengaluru recorded a 2.12 percent space reduction from 4144 sq ft in 2022 to 4057 sq ft in 2023.

"Over the last three years where real estate volumes and prices continue to go up, the premium end of the sector remained on the growth trajectory in 2023. This eventually led to the decline in the million-dollar corpus ability to purchase prime property spaces. Even for 2024, we are expecting the growth to continue --- that means there will be lesser ability when it comes to a million-dollar corpus purchasing power," Vivek Rathi, National Director - Research at Knight Frank India, said.

Monaco continues its reign as the world’s most expensive real estate market where Rs 8.24 crore is 172 sq ft of space, followed by Hong Kong at 236 sq ft and Singapore at 344 sq ft.

Mumbai enters the top 10 global luxury market

Mumbai ranked eighth on Knight Frank’s PIRI index in 2023 from 37th rank in 2022, up by 10 percent year-on-year growth in terms of annual luxury residential price rise.

This jump has marked a place for Mumbai in the top 10 leading luxury residential markets.

Delhi ranked 37th, an improvement of 4.2 percent YoY in 2023 as compared to 77th rank in 2022. Bengaluru stands at 59th rank compared to 63rd in 2022 recording a 2.2 percent YoY increase in 2023.

Asia-Pacific (3.8 percent) pipped the Americas (3.6 percent) to the title of the strongest-performing world region, with Europe, the Middle East, and Africa trailing (2.6 percent). Sun locations continue to outperform city and ski markets, up 4.7 percent on average. Ski resorts are close behind (3.3 percent) and prime prices in the city market tracked have risen 2.7 percent on average.

"India's luxury residential market has shown remarkable growth, as highlighted in Knight Frank's Wealth Report 2024. Mumbai's ascent to the 8th rank globally, with a staggering 10 percent year-on-year increase in luxury residential prices, underscores the city's enduring appeal. While Mumbai logged into the top 10 leagues among PIRI 100 cities, Delhi and Bengaluru also demonstrated positive momentum by improving their ranks," Shishir Baijal, Chairman & Managing Director, of Knight Frank India said.

Experts add that at the start of 2023, economists were expecting a much weaker outcome across global residential property markets. "Stock markets were heading for more pain, inflation was veering out of control and the pandemic-fuelled property boom was set to end in tears as borrowing costs hit 15-year highs in some markets. However, that never happened – we’ve seen a much softer landing in terms of price performance around the world," Kate Everett-Allen, head of international residential and country research at Knight Frank said.