Table of Contents

• Overview of India’s Real Estate Performance
• Mumbai: A Leading Prime Residential Market
• Delhi: Emerging as a Prime Residential Hub
• Asia-Pacific Prime Residential Market Trends
• India’s Residential Real Estate Market Insights
• Frequently Asked Questions

Overview of India’s Real Estate Performance

In a significant milestone, Mumbai and Delhi have been ranked among the top five prime residential markets in the Asia-Pacific region. This achievement underlines India’s growing prominence in the luxury real estate sector, as highlighted by a recent report. Notably, Mumbai secured the third position, while Delhi was ranked fifth on Knight Frank’s prime residential price growth index for the region. These rankings emphasize India’s robust real estate market, driven by economic progress and changing lifestyle aspirations.

Mumbai: A Leading Prime Residential Market

Mumbai’s real estate market continues to flourish, with luxury property prices witnessing an impressive 11.5% year-on-year growth as of Q3 2024. This growth aligns with the bullish trend in Indian stock markets, driven by strong investor sentiment and the city’s dominance in the BFSI (banking, financial services, and insurance) sectors.

Mumbai is now ranked as the 14th most expensive prime residential market in the Asia-Pacific region, with an average price of USD 953 per square foot. A USD 1 million investment in Mumbai can secure approximately 103 square feet of prime real estate, making it an attractive destination for global investors.

Delhi: Emerging as a Prime Residential Hub

Delhi, India’s capital, is gaining recognition as a prime residential market with luxury property prices rising by 6.5% year-on-year. The city is ranked 19th among the most expensive prime residential markets in the Asia-Pacific region, with an average price of USD 452 per square foot in Q3 2024.

Delhi’s real estate sector is supported by its strategic location, connectivity, and a growing base of affluent buyers seeking luxury properties. The city’s resilience in the face of global economic challenges makes it a notable hub for prime real estate investments.

Asia-Pacific Prime Residential Market Trends

The Asia-Pacific region’s prime residential market has shown remarkable resilience despite the challenges posed by the pandemic and rising interest rates. Markets like Mumbai, Delhi, and others in Vietnam and Thailand are driving growth due to a combination of strong homeownership aspirations, limited housing supply, and continued economic development.

As global wealth gravitates towards high-potential markets, the demand for prime residential properties in the Asia-Pacific region is expected to remain strong. India stands out as a key player, with Mumbai and Delhi leading the way.

India’s Residential Real Estate Market Insights

India’s residential real estate market is undergoing a transformative phase, characterized by steady growth and increasing demand. Residential sales in Q3 2024 reached 87,108 units, marking a 5% year-on-year growth. The premium segment experienced an even more substantial rise, with a 41% increase.

According to Shishir Baijal, Chairman of Knight Frank India, the country’s expanding economy and changing lifestyle aspirations are making India a prime investment destination. With a homeownership rate of 87%, India ranks among the top globally, just behind Singapore (90%) and Vietnam (88%).

Wealthy investors are increasingly drawn to India’s prime residential markets, which offer a blend of lifestyle and financial benefits. The sustained growth in luxury property prices across Mumbai, Delhi, and Bengaluru further highlights India’s real estate potential.

Frequently Asked Questions

1. Why are Mumbai and Delhi ranked among the top residential markets in Asia-Pacific?

Mumbai and Delhi have been ranked due to their strong economic performance, robust investor sentiment, and significant year-on-year growth in luxury property prices.

2. What makes Mumbai an attractive destination for luxury real estate investment?

Mumbai’s dominance in the BFSI sector, coupled with rising stock markets and investor confidence, makes it a prime location for luxury real estate investment. Its global connectivity and high demand for prime properties add to its appeal.

3. How does Delhi’s real estate market compare to Mumbai’s?

While Delhi’s growth in luxury property prices is slightly lower than Mumbai’s, it remains a key market due to its strategic location, affordability, and a growing base of affluent buyers.

4. What are the key factors driving India’s residential real estate growth?

India’s residential real estate growth is driven by economic progress, infrastructure development, lifestyle changes, and a high rate of homeownership.

5. How does India compare globally in terms of homeownership rates?

India ranks third globally with an 87% homeownership rate, just below Singapore (90%) and Vietnam (88%), making it a preferred market for residential real estate investments.