Mumbai vs Global Luxury Residential Market: How Much Space Can $1 Million Buy You? Check Report

According to Knight Frank’s The Wealth Report 2024, the value of the Prime International Residential Index (PIRI 100) has increased by 3.1% in 2023 showcasing solid overall gains. Of the 100 luxury residential markets tracked, 80 recorded positive to neutral annual price growth.

PIRI 100 tracks price performance across 100 key city, sun and ski locations.

Manila (26%) leads the rankings while Dubai (16%), last year’s frontrunner slipped one spot. The Bahamas (15%) comes in third place with Algarve and Cape Town (both 12.3%) completing the top five.

Asia-Pacific (3.8%) pipped the Americas (3.6%) to the title of the strongest-performing world region, with Europe, the Middle East and Africa trailing (2.6%).

Sun locations continue to outperform city and ski markets, up 4.7% on average. Ski resorts are close behind (3.3%) and prime prices in the city market tracked have risen 2.7% on average.

India

Mumbai ranked 8th on Knight Frank’s PIRI’s index in 2023 as compared to 37th rank in 2022 which is a phenomenal jump of 10% year-on-year growth in terms of annual luxury residential price rise. This jump has marked a place for Mumbai in the top 10 leading luxury residential markets.

Delhi ranked 37th and showcased a rise of 4.2% YoY in 2023 as compared to 77th rank in 2022. Bengaluru stands at 59th rank compared to 63rd in 2022 recording a 2.2% YoY increase in 2023.

Kate Everett-Allen, head of international residential and country research at Knight Frank said, “At the start of 2023, economists were expecting a much weaker outcome across global residential property markets. Stock markets were heading for more pain, inflation was veering out of control and the pandemic-fuelled property boom was set to end in tears as borrowing costs hit 15-year highs in some markets. However, that never happened – we’ve seen a much softer landing in terms of price performance around the world.”

Shishir Baijal, chairman & MD, Knight Frank India, said, “India’s luxury residential market has shown remarkable growth, as highlighted in Knight Frank’s Wealth Report 2024. Mumbai’s ascent to the 8th rank globally, with a staggering 10% year-on-year increase in luxury residential prices, underscores the city’s enduring appeal. While Mumbai logged into the top 10 leagues among PIRI 100 cities, Delhi and Bengaluru also demonstrated positive momentum by improving their ranks.”

“The outlook for 2024 remains bright as Mumbai with a 5.5% prime price growth forecast, ranks second among the 25 cities globally. As we navigate the complexities of the global market, India’s emergence as a prime destination for luxury real estate investment is undeniable.”

How Much Space Can US $1 Million Buy?

Monaco continues its reign as the world’s most expensive real estate market where US$ 1 million can get you 16 square metres (sq. mt.) of space, followed by Hong Kong (22 sq. mt.) and Singapore (32 sq. mt.) in 2023.

For US$ 1 million, Mumbai offers to purchase 103 sq. mt. of prime residential space, marking a reduction in space purchase of 8.85% YoY compared to 113 sq. mt. in 2022.

Comparatively in Delhi, one can purchase 217 sq. mt. which accounts to reduction of 3.98% from 226 sq. mt. in 2022. Bengaluru recorded a 2.12% space reduction from 385 sq. mt. in 2022 to 377 sq. mt. in 2023.