Mumbai, November 22, 2024: According to Knight Frank’s latest report – Quality Life-ing: Mapping Prime Residential Hotspots, India has been cited amongst the emerging markets in Asia-Pacific (APAC) along with Vietnam and Thailand to experience significant growth. India’s favourable policy environment, strengthening infrastructure and its standing as the fastest growing large economy in the world makes it one of the most compelling markets in the APAC region.
APAC’s prime residential[1] sector is one of the region’s most resilient asset, which has withstood the effects of the pandemic and the onslaught of higher interest rates. Prime residential prices in the region rose for the sixth consecutive quarter at 2.9% year-on-year (YoY) in Q3 2024, with 14 out of 23 markets tracked reporting stable or increasing prices. Manila and Tokyo have witnessed an annual price change of 29.2% and 12.8% respectively in their prime residential prices.
Mumbai ranks 3rd on the annual prime residential price growth index for APAC region, recording a 11.5% YoY increase in luxury property prices in Q3 2024. Mumbai’s outperformance is in line with the performance of Indian stock markets. The investment sentiment remains very strong in the economy, and this is reflected in the growth of the equity indices which have scaled all-time highs, as well as the prime residential prices in this BFSI sector dominated city which saw equally strong price growth.
The city is noted to be 14th most expensive APAC prime residential market at an average price of US$ 953 per sq ft as of Q3 2024. In the city, US$ 1 mn can secure approximately 103 sq m of prime real estate property.
Furthermore, Delhi ranked 5th on the annual prime residential price growth index for APAC region, reporting a 6.5% YoY increment in luxury property prices. The city is noted to be 19th expensive market with an average price of US$ 452 sq ft during Q3 2024.
Bengaluru ranked 7th with prime residential prices growing by 4.8% YoY in Q3 2024. The average price for prime residential market in the city is recorded at US$ 255 per sq ft.
While it is an established offshoring destination, India is also transitioning to higher-value functions such as AI and blockchain, further enhancing its role in corporate business strategy and solidifying its position as a key player on the international stage. The Indian economy is expected to grow by 7.2% in FY 2025 according to the RBI driven by a growth-oriented policy and healthy business environment. Momentum in the residential market in India has significantly increased in 2024, with Q3 recording the highest quarterly sales of 87,108 units, representing a 5% year-over-year (YoY) increase while the premium end of the market grew by a much steeper 41% YoY during the same period.
Shishir Baijal, Chairman and Managing Director, Knight Frank India, said “India’s residential real estate sector is experiencing remarkable growth, fuelled by economic expansion, infrastructure advancements, and evolving consumer preferences. With Mumbai, Delhi NCR, and Bengaluru leading in prime residential price growth, the market is demonstrating resilience and establishing itself as a key hub for prime real estate investments. The interplay of a growing economy and evolving lifestyle aspirations positions India as a distinctive and attractive prospect for investment opportunities. “
Housing markets in the Asia-Pacific are broadly characterised by high home ownership aspirations amid persistent constraints in housing supply and sustained economic growth.
India has been cited market with the 3rd highest home ownership rate of 87%, just behind Singapore at 90% and Vietnam at 88%.
Kevin Coppel, Managing Director, Knight Frank Asia-Pacific, shares, “As global wealth shifts and geopolitical landscapes evolve, affluent individuals are seeking prime residential hotspots that provide both lifestyle benefits and financial security. Markets like Singapore, Japan, and Australia continue to attract the world’s most discerning investors, offering not only strong economic fundamentals but also exceptional quality of life, infrastructure, and mobility. In this rapidly changing environment, Asia- Pacific remains a key destination for those looking to secure their wealth and future-proof their legacy.”
Knight Frank’s “Quality Life-ing” Report has identified Asia-Pacific as a premier lifestyle and investment destination, with Singapore standing out for individuals considering relocation. “Quality Life-ing: Mapping Prime Residential Hotspots” report evaluates 15 prominent markets based on five leading indicators: Economy, Human Capital, Quality of Life, Environment, and Infrastructure and mobility.
Singapore, Australia, Japan and Malaysia lead the rankings as Asia-Pacific’s leading lifestyle and investment hotspots according to Knight Frank’s Quality Life-ing Report