 "Mumbai to see the highest rise in residential prices in the world in 2024")
At 5 per cent, Mumbai is likely to witness the highest rise in residential prices in 2024, a report released on Wednesday said. New Zealand's Auckland will also see a price rise of 5 per cent.
According to real estate consultancy Knight Frank's "Prime Global Cities Index", improving gross domestic product (GDP) figures, Mumbai's relative value and investment in infrastructure will be the prime influencers in pushing prices higher for the luxury housing market in the city.
The consultancy released a forecast for the top 26 cities in the world. Mumbai and Auckland were followed by Singapore and Madrid, which are likely to see a price rise of 4 per cent.
Two cities, Berlin and Edinburgh, are likely to see a fall in residential prices by 1 and 3 per cent respectively. Moreover, London is expected to see no change in home prices.
Knight Frank also released a ranking of cities based on the residential price rise in the quarter that ended on June 31. At 48.8 per cent, Dubai saw the steepest price rise in home prices in the quarter compared to the same quarter last year.
Dubai has been at the top for eight quarters now. It was followed by Tokyo at 26.2 per cent and Manila at 19.9 per cent.
Mumbai, which ranked sixth globally, saw the steepest price rise in India at 5.2 per cent. The other two Indian cities in the ranking were Bengaluru at the 20th spot and Delhi at the 26th spot. The rise in home prices in Bengaluru was 3.6 per cent, and in Delhi, it was 0.2 per cent.
More From This Section
19 of the 46 cities saw a fall in residential prices. Wellington saw the steepest fall at 15.1 per cent, followed by 12.9 per cent in Frankfurt and 11.1 per cent in San Francisco.
On the aggregate, the cities saw a 1.5 per cent rise in residential prices.
"Coming out of a prolonged stagnation over the last decade, prime property price movement in the country was also positively influenced by strong sales momentum in the category amid limited ready inventory, and increased construction cost in recent years," said Shishir Baijal, chairman and managing director at Knight Frank India.
"Global housing markets are still under pressure from the shift to higher interest rates - but the latest results from the Knight Frank Prime Global Cities Index confirm that prices are being supported by: strong underlying demand, weak supply following disruption to new-build projects during the pandemic, and an ongoing return of workers to cities," added Liam Bailey, global head of research at Knight Frank.