According to the “Prime Global Cities Index (PGCI) Q2 2024” published by an international property consultant Knight Frank, Mumbai (Maharashtra) and New Delhi (Delhi) have secured the 2nd and 3rd positions respectively, among 44 cities globally in annual price rise of prime residential properties during the 2nd Quarter (Q2: April-June) of 2024 Calender Year(CY24).
- As per the report, Mumbai, India’s financial capital city saw a Year-on-Year (Y-o-Y) price rise of 13% in prime residences, recorded the 2nd highest (Y-o-Y) growth in prime residential prices in Q2 2024, up from 6th position in Q2 2023.
- Manila, the capital city of Philippines has topped the Knight PGCI Q2 2024, with a 26% annual increase during the June quarter. Wellington, New Zealand ranked last on the list.
About PGCI Q2 2024:
i.PGCI is a valuation-based index which tracks the performance of luxury residential prices across 44 global cities on a quarterly basis, using the data compiled by Knight Frank’s global research network. It tracks nominal prices in local currency.
ii.The report showed that the annual price growth across the 44 cities globally slowed to 2.6% in Q2 of 2024 from 4.1% in Q1 2024.The recent growth rate is below the long-term average of 5.3%.
iii.According to the report, the number of markets with annual price falls has increased to 25% in Q2 2024, from 18% in Q4 2023. But, a greater impact on the overall average growth may be slowdown in the number of markets with high growth rates.
iv.The report revealed that 32% of markets saw an annual prices rise by over 5% in Q1 2024, but, this figure has decreased to 13% in Q2 2024.
Top 5 Prime Global Cities:
| Rank | City | Country | 12-month % change | 3-month % change |
|---|---|---|---|---|
| 1st | Manila | The Philippines | 26 | 16.4 |
| 2nd | Mumbai | India | 13 | 2.5 |
| 3rd | Delhi | India | 10.6 | 0.1 |
| 4th | Los Angeles | The United States of America (USA) | 8.9 | 3.5 |
| 5th | Miami | USA | 7.1 | 1.8 |
Indian Cities:
i.The PGCI for June quarter of 2024 has featured 3 Indian cities namely- Mumbai, New Delhi and Bengaluru (Karnataka) on the list.
ii.The report highlighted that New Delhi,Delhi has registered 10.6% Y-o-Y increase in prime residential property prices. This annual growth in residential prices has significantly improved its ranking from 26th spot (in Q2 2023) to 3rd (in Q2 2024).
iii.While, Bengaluru with Y-o-Y price growth of 3.7%, has remained at 15th spot in Q2 2024.
Key Highlights:
i.As per the report, Europe which is lagging behind all other world regions in terms of price growth, has outperformed them in terms of market acceleration.
- Among 10 fastest-improving markets globally, 6 are in Europe and Stockholm (Sweden) leads or measure of ‘most improved’.
- While, the price growth of Stockholm is still negative i.e. -2.6% in Q2 2024, but, it has improved from -6.1% registered in Q1 2024.
ii.Los Angeles (USA) has secured the 4th position with annual price growth of 8.9%, followed by Miami, USA (7.1%); Nairobi, Kenya (6.6%) which has been ranked at 5th and 6th spot on the list.
- Other global cities in top 10 are: Madrid, Spain (6.4%); Lisbon, Portugal (4.7%); Seoul, South Korea (4.6%) and San Francisco, USA (4.5%).
iii.The report showed that cities like: Dubai (the United Arab Emirates (UAE)) and Miami (USA), which have seen a significant price increases since 2020, experienced more moderate growth.
- Dubai, which saw an increase of 124% since 2020, saw a marginal Y-o-Y decline of 0.3% in Q2 2024.
- While, Miami witnessed a 77% increase since 2020, registered an 8% increase over the last year.
iv.Apart from Dubai and Madrid, major markets of New Zealand such as: Christchurch, Wellington and Auckland , are experiencing a slowdown in growth.
v.Bottom 3 cities which saw sharp decline in the annual property prices are: Wellington, capital city of New Zealand ranked at 44th position on the list, with an annual price fall of 5.9% in prices during the June quarter of 2024, followed by Bangkok, Thailand (-3.9%); and Vienna, Austria (3.2%) ranked at 43rd and 42nd spot respectively.
About Knight Frank:
Senior Partner and Group Chairman- William Beardmore-Gray
Chairman and Managing Director (CMD) of Knight Frank India- Shishir Baijal
Headquarters- London, the United Kingdom (UK)
Founded- 1896
