Knight Frank Wealth Report: $1 million can buy this much of area in Mumbai vs 208 sq m in Delhi; check details

The recent wealth report from property consulting firm Knight Frank highlighted the dramatic differences in prime property acquisition for $1 million across Indian cities. While Mumbai offers only 99 square metres (sq m), Delhi and Bengaluru offer significantly more space at 208 sq m and 370 sq m, respectively. This contrast shows a 2.6% decline for Mumbai over the past decade, reflecting an increase in real estate prices in the city, whereas Delhi and Bengaluru have seen an increase in the amount of space one can purchase, with 11% and 9% more space than ten years ago. 

The report noted that Monaco remains the world's most expensive city for property, where $1 million can secure just 19 sq m. In contrast, Hong Kong and Singapore offer 22 sq m and 32 sq m, respectively, indicating the competitive nature of global luxury real estate. The Prime International Residential Index (PIRI 100) registered an average price increase of 3.6% in 2024, with cities like Seoul and Manila leading the rankings in terms of year-on-year price growth. Indian cities are becoming more appealing to global buyers, as their relative affordability in USD terms has improved.

According to Shishir Baijal, Chairman and Managing Director of Knight Frank India, "In contrast, prime property price growth in Delhi and Bengaluru stood at 13% and 14% respectively, making them more affordable for global buyers. With the strengthening of the US dollar, the relative affordability of these cities has improved in USD terms, enabling buyers to acquire more space compared to 2014. As prime international markets saw an average price increase of 3.6% in 2024, Indian cities continue to establish themselves as competitive players in the global luxury real estate landscape." This statement underscores the strategic advantage of investing in Indian real estate, where investors can acquire more space compared to a decade ago. 

The PIRI 100 rankings reveal that Delhi has significantly improved its position, moving from 37th in 2023 to 18th in 2024, driven by a 6.7% year-on-year growth in luxury residential prices. Mumbai is positioned at 21st, losing thirteen spots from the previous year, while Bengaluru ranks 40th. The rankings reflect the dynamic nature of luxury property markets and suggest a shift toward more affordable yet luxurious options within Indian cities. 

The findings from Knight Frank underline the broad trends in regional real estate markets. Middle Eastern regions saw a robust growth rate of 7.2%, with Latin America and the Caribbean also showcasing strong performances. Meanwhile, Europe lagged behind due to high interest rates and weakened consumer confidence, managing only a 2.5% growth rate. North America experienced a modest growth of 2.4%, influenced by a slowdown in Canadian and some US markets. Resort destinations, however, continue to thrive post-pandemic with nearly 30% growth in values, extending their lead over urban centres.