India's three metropolitan cities Mumbai, Delhi, and Bengaluru prime property market have witnessed price appreciation in 2022. These three cities have climbed up to higher positions in Knight Frank's Prime International Residential Index (PIRI 100). According to the data, one million dollars can buy 113 square meters in Mumbai. The $1 million can buy even more spaces of property in Delhi and Bengaluru.

As per Knight Frank's data, Mumbai is the 18th most expensive prime residential market in the world in terms of US dollars. The city's prime property market has

 recorded a price appreciation of 6.4%, taking Mumbai up to the 37th position in the PIRI 100 index in 2022, compared to the 92nd spot in 2021.

The data said, in Mumbai, with one million dollars a homebuyer can purchase up to 113 sq. mt. of prime residential real estate --- making the city affordable by 13% (in dollar terms) since 2018.

In Delhi, the prime property market garnered a value appreciation of 1.2% --- taking its rank to 77th in the PIRI 100 index, compared to 93rd rank in 2021.

In the national capital of India, one can purchase space of 226 sq. mt with one million dollars --- which is a rise of 12.43% since 2018 in prime residential property.

Further, Bengaluru recorded a price appreciation of 3%. This takes the city to 63rd position in the index in 2022, compared to 91st rank in 2021. One can purchase 385 square meters in Bengaluru with one million dollars --- which is an increase of 71.87% in its prime property market since 2018.

Talking about the Indian residential market, Shishir Baijal, Chairman and Managing Director, of Knight Frank India, said, “The Indian residential markets have shown growth in demand for the last many quarters leading to a rise in values. We also note that the prime residential market in India has seen a rise in sales momentum of high-end properties

Baijal added, "Mumbai ranked second amongst APAC markets, after Tokyo, with a 6.4% YoY rise in values even as other markets in the region saw declining values. India is also one of the few large economies that have continued its growth momentum since the start of the post-pandemic recovery while many other locations face fresh economic challenges."

These three metro cities has recorded a consistent rise in square meters of property that can be purchased with $1 million in the past 5 years. In 2021, one million dollars could buy 108.1 square meters in Mumbai, 206.1 square meters in Delhi, and 357.3 square meters in Bengaluru.

Knight Frank further expects a price appreciation of 3% in Mumbai's prime property market in 2023.

On a global front, Monaco continues its reign as the world’s most expensive city where US$ 1 million can get you 17 square meters of space, followed by Hong Kong (21 sq. mt.) and New York (33 sq. mt.) in 2022. Singapore and London are also among the top five world's most expensive cities as one can purchase only 34 square meters each with $1 million here.

Kate Everett-Allen, partner, of residential research at Knight Frank said, “Last year we referred to 2021 as “an anomaly"; a year characterised by stellar price growth as markets reopened post-Covid-19, and revenge spending took hold. Off the back of such a boom, you might be forgiven for thinking 2022 would see a return to business as usual. Far from it. Omit 2021, the year 2022 posted the highest level of prime price growth on an annual basis (5.2%) since the global financial crisis."

Everett-Allen added, "Wealth preservation, safe-haven capital flight, and supply constraints played their part in driving prime price growth, but it was the post-pandemic surge that continued to push prices higher. For the world’s wealthy, this increased their appetite to buy, with 17% of UHNWIs adding to their portfolios in 2022."

The overall value of the Prime International Residential Index (PIRI 100) which tracks the movement in luxury house prices across the world increased by 5.2% YoY in 2022.

Notably, prices in Dubai accelerated 44.2% in 2022, maintaining its position at the top of Knight Frank’s PIRI 100 and cementing its status as a global hub for ultra-high-net-worth individuals (UHNWIs), assisted by numerous visa incentives.

Also, of the 100 markets tracked in PIRI, which analyses prime property price performances in 100 cities, sun, and ski locations globally, 85 recorded positive or flat price growth in 2022. The Americas (7%) narrowly pipped Europe, the Middle East, and Africa (6.5%) to the title of the top-performing region, with Asia-Pacific trailing at 0.4%.

Prices in Dubai accelerated 44.2% in 2022, maintaining its position at the top of Knight Frank’s PIRI 100.View Full Image

Prices in Dubai accelerated 44.2% in 2022, maintaining its position at the top of Knight Frank’s PIRI 100. (Knight Frank)