The average annual prices of real estate in Mumbai, Bengaluru, and New Delhi jumped in the third quarter (Q3) of 2022, property consultant Knight Frank said in a report.
The “Prime Global Cities Index Q3 2022” report said Mumbai moved up from 39th to 22nd position in Q3 2022. Bengaluru and New Delhi too witnessed an upward movement, rising from 41st and 38th rank, respectively, in Q3 2021 to 27th and 36th position in Q3 2022.
The report said the average price in Mumbai rose 4.8 per cent year-on-year (YoY), Bengaluru 3.3 per cent YoY, and New Delhi 1.2 per cent YoY.
Factors supporting price growth included strong market sentiment, affordability, low-interest rates, and a stable economy, it said.
Shishir Baijal, chairman and managing director at Knight Frank India, said, "India continues to distinguish itself as one of the most resilient large economies of the world, and market sentiments remain strong. While increasing mortgage rates have weighed down prime residential markets globally, the Indian prime residential market has been relatively strong and should be able to sustain the momentum till the end of 2022."
Knight Frank's Prime Global Cities Index Q3 2022 recorded an average annual growth of 7.5 per cent, down from a peak of 10 per cent in Q1 2022. However, at 7.5 per cent, yearly growth still sits above the index's average five-year growth rate of 4.4 per cent. In addition, six cities registered a double-digit price growth, whereas 19 cities witnessed a decline in prime residential prices between June and September 2022.
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," said the report.