Bengaluru becomes World's 4th fastest Growing Luxury Real Estate Hub

Luxury Housing in Indian markets have been outperforming the global markets and three cities Bengaluru, Mumbai and Delhi are among the first 15 cities in Knight Frank Prime Global Cities Index (PGCI) for Q2 2025.

Technological riches pushed Bengaluru to the 4th position with a 10.2 percent increase in prime property prices on a year-on-year basis. Supported by infrastructure capacity improvements, Mumbai emerged 6 th with 8.7 percent growth and Delhi was 15 th with 3.9 percent on stable high luxury demand.

All major cities in India made it to the top 15 global cities with Bengaluru achieving the 4th position with 10.2 percent increase in prime property growth, followed by Mumbai at 6 th place with 8.7 percent increase and Delhi at 15 th place with 3.9.

Key Highlights

• Bengaluru ranks 4th globally in prime property price growth: Knight Frank.
• Mumbai and Delhi enter top 15 global luxury housing markets in 2025.
• India’s luxury real estate defies global slowdown with double-digit gains.

Globally, Seoul topped the list with a keen 25.2 percent growth per annum, the report said, with Tokyo (16.3 percent) and Dubai (15.8 percent) following suit.

Also Read: Bengaluru Luxury Housing Slows Amid Tech Layoffs

Knight Frank PGCI follows price dynamics in the segments of the leading world cities in terms of prime residential location based on data valuation of the research net of Knight Frank.

According to the report, Indian cities have been resilient despite other luxury housing markets around the world slow down where growth in the average prime prices slowed to 2.3 per cent annually in Q1 against 3.5 per cent in the previous quarter. A high level of demand, shortage of prime property, high levels of wealth creation in major centres have boosted the prices.

The technological affluence in Bengaluru, a lot of infrastructure enhancement in Mumbai, and the stable luxury appeal in Delhi have maintained India high and in demand across the global market as indicated by the chairman and managing director of Knight Frank India, Shishir Baijal. According to him, further growth will depend on further economic stability and steadily redeveloping urban areas in the following months.

Liam Bailey, the Global Head of Research Knight Frank said that cooling of the world is related to a change in expectations regarding the borrowing cost with a view that there has been more fragmentation in the markets.

“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.