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Mumbai and Delhi have been ranked among top 5 Asia-Pacific prime-residential markets to record higher annual price growth, according to a report on Friday, as India was cited among the emerging markets in Asia-Pacific, along with Vietnam and Thailand, to experience significant growth. 

Mumbai ranked third on the annual prime residential price growth index for the APAC region in the report by Knight Frank, recording an 11.5 per cent YoY increase in luxury property prices in Q3 2024.

"Mumbai’s outperformance is in line with the performance of Indian stock markets. The investment sentiment remains very strong in the economy, and this is reflected in the growth of the equity indices which have scaled all-time highs, as well as the prime residential prices in this BFSI sector-dominated city which saw equally strong price growth," said the report.

Moreover, Mumbai is noted to be the 14th most expensive APAC prime residential market at an average price of $ 953 per square foot. In the city, $1 million can secure approximately 103 square feet of prime real estate property.

Furthermore, Delhi ranked fifth on the annual prime residential price growth index for the APAC region, reporting a 6.5 per cent increment in luxury property prices. The city is noted to be the 19th most expensive market with an average price of $ 452 sq ft during Q3 2024, the report mentioned.

"India's residential real estate sector is experiencing remarkable growth, fuelled by economic expansion, infrastructure advancements, and evolving consumer preferences," Knight Frank India Chairman and Managing Director, Shishir Baijal, said.

With Mumbai, Delhi-NCR, and Bengaluru leading in prime residential price growth, the market is demonstrating resilience and establishing itself as a key hub for prime real estate investments.

"The interplay of a growing economy and evolving lifestyle aspirations positions India as a distinctive and attractive prospect for investment opportunities," said Baijal.

The Asia-Pacific region’s prime residential sector is one of the region’s most resilient assets, which has withstood the effects of the pandemic and the onslaught of higher interest rates.

Housing markets in the Asia-Pacific are broadly characterised by high home ownership aspirations amid persistent constraints in housing supply and sustained economic growth. India has been cited as the market with the third highest home ownership rate of 87 per cent, just behind Singapore at 90 per cent and Vietnam at 88 per cent.