Bengaluru emerges as a global luxury real estate hotspot; Ranks 4th in prime housing growth, Mumbai 6th, and Delhi 15th

Bengaluru ranked 4th worldwide with a 10.2% year-on-year rise in prime property values, while Mumbai placed 6th with 8.7% growth and Delhi 15th with 3.9%. Globally, Seoul led the rankings with a sharp 25.2% annual increase, followed by Tokyo (16.3%) and Dubai (15.8%), the report said.

Knight Frank’s PGCI tracks movements in prime residential prices across 46 global cities using valuation-based data from its research network.

Also Read: Bengaluru, Mumbai, Delhi among top 15 global cities for prime residential price growth: Knight Frank report

The report noted that despite a slowdown in luxury housing markets globally, where average prime price growth eased to 2.3% annually from 3.5% in Q1, Indian cities have remained resilient. Strong demand, limited prime supply, and rising wealth creation in urban centres have supported prices.

Shishir Baijal, chairman and managing director of Knight Frank India, said Bengaluru’s tech-driven wealth, Mumbai’s infrastructure upgrades, and Delhi’s steady luxury demand have kept India in the global spotlight. He said that continued economic stability and urban redevelopment will likely sustain growth in the months ahead.

Liam Bailey, Global Head of Research at Knight Frank, said the global cooling reflects shifting expectations on borrowing costs, with markets now showing a more fragmented pattern.

“Prime markets are taking a collective breath. The recovery we have seen over recent quarters was aided by the expectation of lower borrowing costs, and with that timeline now pushed out, a cooling in price growth is inevitable. We’re seeing a more fragmented market, with some European cities showing surprising strength while former high-flyers in Asia begin to level off,” Bailey said.