Showing positive signs after the Covid-19 pandemic, Bengaluru and Mumbai were listed among the top 10 cities in the Asia-Pacific region (APAC) that showed the highest rise in residential prices in the second half of 2023.
In the report “Asia-Pacific Residential Review H2 2023”, released by real estate consultancy firm Knight Frank, Bengaluru was ranked eighth with a 7.1 percent year-on-year (y-o-y) growth in prices. Mumbai was at the ninth spot with a y-o-y price growth of 7 percent. The National Capital Region (NCR) was in the eleventh spot with a growth of 6 percent.
Singapore topped the list with a y-o-y growth of 13.7 percent.
The report, which covered 25 cities across the APAC region, noted that 21 cities recorded either positive or stable growth in the second half of 2023.
Knight Frank, in its latest residential report, estimated the average y-o-y growth in residential prices to be 4.5 percent in the latter half of 2023.
The positive growth in the last six months can be attributed to the US Federal Reserve’s decision to pause rate hikes that opened up an opportunity for potential buyers to invest in the real estate sector.
Kevin Coppel, Managing Director of the APAC region of Knight Frank said, “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.”
Focussing on India’s performance in the real estate market, the report highlighted that despite higher mortgage rates and prices, the demand for residential properties across India’s major cities reached a 10-year high in 2023.
It also said that Mumbai, Bengaluru and NCR together constituted 60 percent of the total sales volume of residential areas across the country. A total of 3,29,097 apartments were sold in the Indian market in 2023.
Four cities – Hong Kong, Seoul, Shenzhen and Guangzhou – saw a decline in home prices, primarily due to weak market sentiment, high interest rates and substantial inventory.
(Edited by Tikli Basu)
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