India is a key growth market in Asia-Pacific (APAC), driven by favourable policies, expanding infrastructure, and rapid economic growth, according to Knight Frank's latest report. APAC's prime residential sector grew 2.9% YoY in Q3 2024, marking six consecutive quarters of growth. Mumbai led India with an 11.5% YoY rise in luxury property prices, ranking 3rd in APAC, followed by Delhi (6.5%) and Bengaluru (4.8%). India's residential market recorded a 41% YoY surge in premium segment sales in Q3 2024, supported by strong economic momentum and demand. With a 7.2% GDP growth forecast for FY 2025, India remains a top lifestyle and investment destination in the APAC region.
India has been identified in Knight Frank's latest report as one of the emerging markets in the Asia-Pacific (APAC) region, alongside Vietnam and Thailand, poised for significant growth. India's favourable policy environment, expanding infrastructure, and its position as the fastest-growing large economy globally make it a highly compelling market in APAC.
The prime residential sector in APAC has proven resilient, withstanding the pandemic's impact and the rise in interest rates. Prime residential prices in the region rose by 2.9% year-on-year (YoY) in Q3 2024, marking the sixth consecutive quarter of growth. 14 of the 23 tracked markets reported stable or increasing prices. Manila and Tokyo saw notable annual price changes of 29.2% and 12.8%, respectively.
Mumbai ranks 3rd on the annual prime residential price growth index for APAC, recording an 11.5% YoY increase in luxury property prices in Q3 2024. This outperformance mirrors the performance of India's stock markets, which have reached all-time highs, reflecting the strong investment sentiment in the country. Mumbai remains the 14th most expensive APAC prime residential market, with an average price of USD 953 per sq ft in Q3 2024. A USD 1 million budget can secure approximately 103 sq m of prime real estate in the city.
Delhi ranks 5th on the annual prime residential price growth index for APAC, seeing a 6.5% YoY rise in luxury property prices. The city is the 19th most expensive market with an average price of USD 452 per sq ft in Q3 2024. Bengaluru holds 7th place, with prime residential prices growing by 4.8% YoY in Q3 2024. The average price in the city's prime residential market is USD 255 per sq ft.
While India remains a leading offshoring destination, it is also transitioning towards higher-value sectors such as AI and blockchain, enhancing its role in global corporate strategies. India's economy is forecasted to grow by 7.2% in FY 2025, supported by a growth-focused policy and a robust business environment. Residential market momentum in India has surged in 2024, with Q3 registering the highest quarterly sales of 87,108 units, marking a 5% YoY increase. Notably, the premium market segment grew by 41% YoY during the same period.
Housing markets across APAC are defined by high homeownership aspirations amidst limited housing supply and ongoing economic growth. India has the third-highest homeownership rate in the region at 87%, behind Singapore at 90% and Vietnam at 88%.
Knight Frank's report positions Asia-Pacific as a prime destination for lifestyle and investment, with Singapore standing out as a top choice for those considering relocation. The report ranks 15 major markets based on key indicators: Economy, Human Capital, Quality of Life, Environment, and Infrastructure. Singapore, Australia, Japan, and Malaysia are the leading hotspots for lifestyle and investment in the region.
In conclusion, India's real estate market continues to demonstrate strong growth, particularly in the luxury segment, driven by its favourable economic environment and increasing demand for high-end properties. As the country transitions towards advanced sectors like AI and blockchain, its residential market shows resilience, making India an attractive destination for both lifestyle and investment within the Asia-Pacific region.
Advertisement
Facebook
Whatsapp
