Three Indian cities — Mumbai, Bengaluru, and New Delhi — registered a 3.1 per cent increase in average residential prices in Q3 2022, compared to Q3 2021. The average annual growth across 45 cities was at 7.5 per cent in Q3 2022, down from a peak of 10 per cent in Q1 2022, according to a report.

Knight Frank’s Prime Global Cities Index tracks the movement in prime residential prices in local currency across more than 45 cities worldwide.

The report states that Mumbai moved up from 39th rank in Q3 2021 to 22nd in Q3 2022. Bengaluru and New Delhi rose from 41st and 38th rank, respectively, in Q3 2021 to 27th and 36 th in Q3 2022.

The rise in average prices in Mumbai was recorded at 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 include strong market sentiment, adequate affordability, low interest rates compared to 2019, and a relatively stable economy and business environment compared to other developed economies.

“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,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India .

Additionally, the report notes that Dubai recorded the fastest rise in prime prices at 88.8 per cent during a 12-month change. Wellington was the weakest-performing market with a decline of 18 per cent. Some European cities registered strong performance in prime prices — Zurich 10.7 per cent, Edinburgh 9.9 per cent, Berlin 9.4 per cent, Dublin 8.6 per cent, and Madrid 5.6 per cent — in the last 12 months despite a drop in sentiment and slowdown in the Eurozone’s economy.

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