Bengaluru became the second highest-ranked Indian city on the Global Residential Cities Index Q2 2023, climbing to 22nd position from 77th in Q2 2022, according to the Global Residential Cities Index Q2 2023, Knight Frank
The city witnessed a residential price appreciation of 5.3 per cent y-o-y in Q2 2023. Meanwhile, residential price growth across the 107 world cities has slowed in Q2 2023, falling to 1.7 per cent y-o-y from 11.7 per cent y-o-y in Q2 2022. According to the report, this is recorded to be lower than what was experienced in the first wave of the pandemic, when growth reached a low of 2.9 per cent in Q2 2019.
The index provides a quarterly snapshot of trends in mainstream housing markets across more than 100 global cities.
“Residential prices have grown at a healthy clip along with strong demand since the beginning of 2022. The comparatively strong economic fundamentals in India are expected to sustain demand momentum for residential assets, both for homebuyers and global investors,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
How other cities fared
Mumbai too saw growth by securing the 19th rank with a 6 per cent annual percentage change, compared to its 95th position in Q2 2022. Meanwhile, New Delhi has claimed the 3rd spot among Indian cities and the 25th spot globally, experiencing a 4.5 per cent y-o-y residential price appreciation, marking a climb of 65 places from its 90th position in Q2 2022.
In Q2 2023, Chennai and Kolkata have taken the 4th and 5th positions among Indian cities, and on the global index, they stand at 39th and 40th, both showing a 2.5 per cent increase in the residential asset class. In the preceding year, these cities were ranked at 107th and 114th on the global scale.
The Knight Frank Global Residential Cities Index Q2 2023 reveals that the Turkish capital, Ankara, leads the list with the highest growth rate of 105.9 per cent, followed by Istanbul at 85.1 per cent. On the other end of the spectrum, Stockholm ranks lowest in terms of price appreciation with a decline of 14.3 per cent on the Global Residential Cities Index.
Liam Bailey, Global Head of Research at Knight Frank, noted, “There is early evidence that conditions are beginning to improve in several significant global city markets. While it’s probable that the era of rising interest rates is behind us, homeowners should anticipate dealing with current interest rate levels for the foreseeable future, which will influence the pace of recovery in the global housing market.”