Hyderabad records highest residential appreciation, Mumbai ranks lowest

Closing in on Hyderabad, Chennai ranked second amongst Indian cities and 131 globally with residential price appreciation of 2.2 percent.

Kolkata ranked 135 and Ahmedabad at 139 on the global index with a price appreciation of 1.5 percent and 0.4 percent respectively in the residential asset class.

Mumbai was the lowest-ranked Indian city with a global ranking of 146th on the index, registering a decline of 1.8 percent in home prices.

Shishir Baijal, Chairman and Managing Director for Knight Frank India, said: “India has seen a strong demand revival being supported by government stimulants, increased household savings, as well as low interest rates. Pricing has played a key role in pushing up home sales, as they had, for most part of the last six quarters, remained attractive."

''As demand trends developed, residential values firmed up in many markets, and are now expected to remain between stable to increasing. However, developments in the pricing dynamics will depend on the future demand. Factors like interest rates, impact of Omicron and inflationary pressures, amongst others will determine buyer sentiments,'' he said.

In its latest report titled Global Residential Cities Index Q3 2021, Knight Frank said residential prices across the 150 cities worldwide increased at an annual average of 10.6 percent YoY in Q3 2021.

The report said 93 percent of cities saw a price proliferation over the 12-month period, while 44 percent of cities registered double-digit price growth in the year to Q3 2021.

The Turkish city of Izmir led the Knight Frank’s Global Residential Cities Index with the highest growth rate of 34.8 percent, followed by Wellington in New Zealand at 33.5 percent.

Kuala Lumpur ranked the lowest in terms of price appreciation (-5.7 percent) on the Global Residential Cities Index.