Mumbai and Delhi's Real Estate Prices Soar, Achieving Double-Digit Growth and Global Ranks of 3rd and 5th

The real estate markets in India's economic titans Mumbai and Delhi are scorching, with prices skyrocketing at a pace unmatched across the globe. According to the latest Knight Frank Global Residential Cities Index, Mumbai's residential real estate prices have risen a staggering 11.3% over the past year, earning the city the 3rd highest annual price growth ranking internationally. Not to be outdone, the national capital Delhi clocked in at 5th globally with 10.9% year-on-year growth.

This real estate frenzy has been fueled by a multitude of factors - rapid urbanization, rising incomes, affordable home loan rates, and a severe supply crunch of housing stock against galloping demand. With the economies of these megacities continuing their robust expansion, the trend shows no signs of cooling anytime soon.

"Mumbai and Delhi have transitioned from being cities to becoming countries within countries," says Anuj Puri, Chairman of ANAROCK Property Consultants. "Domestic and international ultra-high net worth individuals (UHNWIs) have been allocating a major portion of their investible income into their real estate markets, pushing up luxury housing prices through the stratosphere."

The ultra-luxury housing segment has emerged as the showstopper. Swanky properties in amenitized townships and centrally located addresses routinely command price tags over ₹25 crore. With high net worth buyers seemingly undeterred by steep valuations, Mumbai's Worli locality recorded the highest average residential property rates in the nation at ₹73,000 per sq ft over 2022.

Industry experts caution that this runaway bull run could diminish housing affordability for the salaried class. However, developers remain optimistic about sustained demand from wealthy domestic buyers and NRIs capitalizing on the favorable rupee-dollar exchange rates.

As Mumbai and Delhi's glitzy residential markets continue to tower over global counterparts, the cities' real estate fever seems poised to intensify in the coming years.