Israel-Palestine Conflict: Jerusalem property prices soar amid turmoil 

Amid heightening tensions between two rival nations of Israel and Palestine, the Holy city of Jerusalem has found a place among the top global cities. The city that houses holy places for both Arabs and Jews and has been the bone of contention between the two for hundreds of years, now ranks among the top 10 cities in the world in terms of price escalation of residential properties. 

As per the latest Knight Frank report, between July 2022 and June 2023, Jerusalem recorded 14.4 per cent surge in home prices—making it the sixth most expensive city in the world. Another Israeli city, Tel Aviv, which is also the largest city in the country with population exceeding 460,000, ranks 33rd. During the period, it reported 3.3 per cent hike in prices of homes. 

“There is early evidence that conditions are beginning to improve in a number of key global city markets. While it’s likely that rising rates are now behind us, homeowners can expect to contend with current interest rate levels for the foreseeable future, which will limit the pace of the global housing market’s recovery,” said Liam Bailey, Global Head of Research, Knight Frank. 

Major Indian cities like Mumbai, Bangalore, Delhi, Chennai and Kolkata meanwhile reported steepest jumps in ranks. While India’s most populous city and the largest real estate market Mumbai witnessed 6 per cent rise in average home prices, it gained a whopping 76 places in last one year. From 95th position in June, 2022, Mumbai now ranks 19th globally. Bangalore, the third largest market after Mumbai and Delhi-NCR, gained 55 spots to feature at 22nd rank, while Delhi is at 25th position globally - up from 90th last year. 

Chennai and Kolkata, relatively smaller residential real estate markets compared to the top three in India, gained handsomely as well. With 2.5 per cent appreciation in average home prices each, Chennai now stands at 39th spot, from 107th in 2022. While Kolkata stands at 40th spot now, up from 114th. 

According to Shishir Baijal, Chairman & Managing Director, Knight Frank India, residential prices in India have grown at a healthy rate along with strong demand since the beginning of 2022. “Even while rates rose, consumer confidence remained buoyant leading to growing sales volumes. The comparatively strong economic fundamentals in India are expected to sustain demand momentum for residential assets, both for homebuyers and global investors,” he said.