According to a report released on Tuesday, Mumbai and Bengaluru ranked among the top 10 cities in the Asia-Pacific (APAC) region with the highest rise in residential prices in the second half of 2023. The National Capital Region (NCR) secured the 11th spot on the list of 25 countries in the region.
The “Asia-Pacific Residential Review Index for H2 2023,” published by real estate consultancy Knight Frank, revealed that Bengaluru experienced the eighth highest year-on-year (Y-o-Y) surge in home prices during the period, at 7.1%. Mumbai followed closely with a 7% increase, securing the 9th position on the list.
Home prices in the NCR rose by 6% Y-o-Y, placing it at the 11th spot. Notably, Mumbai, NCR, and Bengaluru accounted for 60% of the total sales volume across India in 2023.
Shishir Baijal, chairman and managing director of Knight Frank India, commented, “In 2023, residential property demand in India’s major cities has surged to its highest level in a decade, despite the increase in mortgage rates and property prices.”
Across the region, Singapore witnessed the highest price rise at 13.7%, followed by Perth at 12.8% and Brisbane at 12.1%.
Kevin Coppel, managing director at Knight Frank Asia-Pacific, highlighted, “Notable performers such as Singapore, Sydney, Brisbane, Perth, Manila, Delhi, and Bengaluru have benefited from factors like the wealth effect, demand exceeding supply, and optimistic economic growth prospects.”
Conversely, four countries experienced a decline in home prices, attributed to weak market sentiment, high interest rates, and substantial inventory. These countries include Hong Kong (-6.8%), Seoul (-5.5%), Shenzen (-3.6%), and Guangzhou (-3%).
“With significant tailwinds such as the expected reduction in interest rates and relatively strong economic growth, residential demand is anticipated to sustain momentum in 2024,” added Baijal.
