Bengaluru, Mumbai, and Delhi Among Top Global Cities for Prime Residential Price Growth: Knight Frank Report

Bengaluru, Mumbai, and Delhi have emerged as key players in the global real estate market, with all three cities ranking among the top 15 for prime residential price growth in the first quarter of 2025, according to Knight Frank’s Prime Global Cities Index. This ranking underscores the growing significance of these Indian cities in the international luxury housing market.

Bengaluru’s Strong Performance at the Forefront

Leading the Indian cities, Bengaluru secured the fourth spot globally, with an impressive 8.3% annual rise in prime residential prices. The city's remarkable growth is attributed to its robust economy, thriving tech industry, and increasing demand for high-quality residential properties. As Bengaluru continues to attract both domestic and international investors, its real estate market reflects a shifting trend towards more premium housing options, driven by a growing urban population and an affluent middle class.

Mumbai and Delhi Following Close Behind

Mumbai, India’s financial powerhouse, came in fifth place globally with a 7.6% increase in prime residential prices. The city remains a top destination for luxury buyers, especially in areas like South Mumbai and its western suburbs. This price growth can be attributed to the sustained demand for upscale properties, bolstered by Mumbai’s status as a commercial and financial hub.

Delhi, the national capital, ranked 15th with a more modest 3.9% rise in prime residential prices. While the pace of growth in Delhi has been slower compared to Bengaluru and Mumbai, the city continues to attract high-net-worth individuals due to its political significance, infrastructure improvements, and expanding luxury residential options.

Why Indian Cities Are Gaining Global Attention?

The strong performance of Indian cities in Knight Frank’s global index highlights the increasing appeal of India’s real estate sector, particularly in the luxury segment. Factors such as economic stability, infrastructure development, and a shift in buyer preferences towards premium homes have positioned cities like Bengaluru, Mumbai, and Delhi as attractive options for both Indian and international investors.

According to Shishir Baijal, Chairman and Managing Director of Knight Frank India, Indian cities are benefiting from a deepening end-user market, growing affluence, and increasing demand for quality living spaces. The expanding urban infrastructure in cities like Bengaluru and Mumbai—particularly the development of metro systems and residential projects—has played a key role in driving property values upward.

Asia-Pacific and Middle East Regions Lead Global Recovery

Knight Frank’s report tracks prime residential price movements across 45 cities worldwide, with cities in the Asia-Pacific and Middle East regions leading the charge. Seoul topped the global index with an 18.4% annual rise in prime residential prices, followed by Dubai at 16.3% and Tokyo at 15.5%. These cities’ success has been driven by strong demand for luxury properties, favorable economic conditions, and limited housing supply.

In contrast, major Western markets like London and Toronto have experienced slight declines in prime residential prices. This is attributed to rising interest rates and the broader economic uncertainties affecting buyer confidence. However, the report suggests that despite these challenges, the global luxury real estate market remains resilient, with 72% of the cities in the index recording positive price growth.

Outlook for India’s Luxury Real Estate Market

Knight Frank predicts continued growth for India’s prime residential sector, supported by factors such as softening interest rates, increasing buyer sentiment, and a solid economic foundation. As Indian cities mature as real estate hubs, Bengaluru, Mumbai, and Delhi are expected to maintain their positions as attractive destinations for high-end residential investment.

Mr. Baijal also noted that the global outlook for prime residential markets will depend on future monetary policies, particularly in major economies. As interest rates stabilize, it is expected that demand for luxury homes will remain strong in cities around the world, including in India.

The performance of Bengaluru, Mumbai, and Delhi in Knight Frank’s Prime Global Cities Index highlights India’s growing prominence in the global luxury real estate market. As these cities continue to evolve with advancements in infrastructure, economic growth, and increasing affluence, their prime residential markets are well-positioned for sustained growth in the years ahead. The report also reveals significant opportunities in India’s luxury real estate sector for developers, investors, and homebuyers aiming to benefit from the country's expanding urban landscapes. With rising demand for premium homes and increasing international interest, India’s real estate sector is on track to play an even more influential role in the global market.