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Bengaluru: The residential markets of Bengaluru, Mumbai, and New Delhi recorded a rise in their average annual prices of prime residential properties in the second quarter this year (Q2 2024), announced property consultancy Knight Frank in a report released Friday.
Bengaluru recorded a year-on-year (YoY) rise of 3.7 per cent in prime residential property prices in Q2 2024. The city ranked 15 out of 44 cities surveyed world-wide for the report in order of annual percentage change. It maintained status quo, ranking 15 in Q2 2023 as well.
Bengaluru is third amongst Indian cities on the list following Mumbai which saw a 13 per cent YoY jump and Delhi with a 10.6 per cent YoY rise.
Bengaluru and New Delhi recorded price rise in prime properties as well as high-end and premium categories, driven by higher demand. The premium priced category has become the strongest driver for overall sales so far this year.
Across the 44 cities world-wide surveyed for this report, annual price growth slowed from 4.1 per cent in Q1 to 2.6 per cent in Q2 2024, remaining below the long-term average of 5.3 per cent.
While most cities globally experienced a slowdown in growth, major Indian markets remained an exception by remaining in growth mode for prime residences.
Shishir Baijal, Chairman and Managing Director at Knight Frank India, said, "The premium segment has been the primary driver of sales growth across the Indian market, and this is reflected in the price growth seen during Q2 2024. We expect this momentum to sustain in 2024.”
With these three cities being the largest residential markets of the country, the price growth in prime residential properties is a strong indicator of the growing wealth and their increasing affluence as per the report.
Shantanu Mazumder, Executive Director, Bengaluru, Knight Frank India, said, “The north and south Bengaluru continues to drive the volume while central Bengaluru continues to propel luxury demand. The market's dynamism is anticipated to persist.”