The value of the Prime International Residential Index (PIRI 100) that tracks the movement in luxury house prices across the world increased by 5.2% YoY in 2022.
The latest Knight Frank’s The Wealth Report 2023 added that Mumbai, Bengaluru and Delhi have climbed up to higher positions on PIRI 100 in 2022.
The prime residential prices in Dubai accelerated 44.2% in 2022, maintaining its position at the top of PIRI 100 and cementing its status as a global hub for ultra-high-net-worth individuals (UHNWIs), assisted by numerous visa incentives.
Of the 100 markets tracked in PIRI, which analyses prime property price performances in 100 cities, sun and ski locations globally, 85 recorded positive or flat price growth in 2022.
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The Americas (7%) narrowly pipped Europe, the Middle East and Africa (6.5%) to the title of the top-performing region, with Asia-Pacific trailing on 0.4%.
Globally, Mumbai’s prime property market has witnessed a price appreciation of 6.4% which moves up the city to 37th position on the PIRI 100 in 2022 as opposed to 92nd in 2021.
Prime properties in Mumbai are expected to witness an appreciation of 3% in 2023.
Bengaluru’s prime property appreciation by 3% moved up the city’s position to 63rd in 2022 from 91st in 2021. Delhi’s prime property market saw value appreciating by 1.2% which moved up the ranking to 77th from 93rd in 2021.
Dubai (44.2%), Aspen (27.6%), Riyadh (25.0%), Tokyo (22.8%), and Miami (21.6%) are the top prime residential markets based on the PIRI 100.
Kate Everett-Allen, partner, residential research, Knight Frank, said, “Last year we referred to 2021 as ‘an anomaly’, a year characterised by stellar price growth as markets reopened post-Covid-19, and revenge spending took hold. Off the back of such a boom, you might be forgiven for thinking 2022 would see a return to business as usual. Far from it. Omit 2021, the year 2022 posted the highest level of prime price growth on an annual basis (5.2%) since the global financial crisis.”
Monaco continues its reign as the world’s most expensive city where $1 million can get you 17 square metres of space, followed by Hong Kong (21 sq. mt.) and New York (33 sq. mt.) in 2022.
Comparatively in Mumbai, one can purchase 113 sq. mt. of prime residential real estate, making the city affordable by 13% (in dollar terms) since 2018. Mumbai is the 18th most expensive prime residential market in the world.
Shishir Baijal, chairman and managing director, Knight Frank India, said, “The Indian residential markets have shown growth in demand for the last many quarters leading to a rise in values. We also note that the prime residential market in India has seen a rise in sales momentum of high-end properties.”
“Mumbai ranked second amongst APAC markets, after Tokyo, with 6.4% YoY rise in values even as other markets in the region saw declining values. India is also one of the few large economies that has continued its growth momentum since the start of the post pandemic recovery while many other locations face fresh economic challenges.”
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