Mumbai, the financial capital of India, has been ranked 37th globally in the luxury housing price growth index, according to a recent report by Knight Frank. The report titled “Prime Global Cities Index Q4 2022” tracks the movement of luxury residential prices in 46 cities worldwide. Mumbai, the only Indian city to feature in the index, saw a 1.1% increase in luxury housing prices in Q4 2022 as compared to the same period last year.
The report highlights that global luxury residential property prices increased by an average of 8.1% in Q4 2022, which is the highest growth rate recorded in the last two decades. Several factors such as low-interest rates, high liquidity, and the shift towards greater emphasis on quality of life have fueled the demand for luxury residential properties across the world.
Mumbai’s performance in the luxury housing market is seen as a positive sign, considering the sluggish growth the city witnessed in the last few years. Experts believe that the increase in luxury housing prices is an indication of a gradual recovery in the city’s real estate sector.
According to the report, the top three cities in terms of luxury housing price growth are Vienna, Athens, and Budapest, which saw growth rates of 43.2%, 38.3%, and 34.6%, respectively. On the other hand, Tel Aviv, Taipei, and Barcelona were the only cities that recorded a decline in luxury residential prices.
The report suggests that the growth rate in luxury residential prices is likely to slow down in the coming months due to several factors such as rising inflation, increasing interest rates, and the COVID-19 pandemic’s impact on the global economy. However, it is expected that the demand for luxury residential properties will continue to remain strong in the long run, driven by the growing affluence of high-net-worth individuals and the trend towards a more luxurious lifestyle.