Knight Frank Wealth Report 2025: Comparing $1 Million Property Value and Home Sizes in Mumbai, Delhi and Bengaluru

With real estate prices constantly shifting, understanding the purchasing power of $1 million across India’s major cities provides insight into market trends. According to Knight Frank’s Wealth Report 2025, the amount of prime residential space that $1 million can buy varies significantly between Mumbai, Delhi, and Bengaluru, reflecting the unique dynamics of each market.

Mumbai: The Costliest Market in India

Mumbai, India’s financial capital, continues to hold its reputation as the most expensive real estate market in the country. As per Knight Frank’s analysis, $1 million in 2024 could buy approximately 99 sq. m. (1,065 sq. ft.) of prime residential space in Mumbai. This marks a 2.6% decline over the past decade, highlighting the persistent pressure on Mumbai’s luxury real estate market.

Despite the decline in square footage per million dollars, Mumbai remains among the world’s most expensive property markets, where demand for high-end residential units continues to be driven by limited land availability, high development costs, and an influx of high-net-worth individuals (HNWIs). Prime neighborhoods such as South Mumbai, Bandra, and Worli remain the most sought-after locations, with property prices continuing to rise due to exclusivity and limited inventory.

Delhi: More Space for Your Money

Delhi, the national capital, presents a more favorable scenario for buyers. In 2024, $1 million could purchase 208 sq. m. (2,238 sq. ft.) of prime residential property in the city, representing an 11% increase in affordability compared to the previous decade. This growth is attributed to a relatively stable pricing environment, infrastructure developments, and a shift in demand patterns towards high-end gated communities.

As a city that blends political and business significance, Delhi has seen consistent interest from luxury homebuyers. The expanding metro network, improved road connectivity, and urban redevelopment projects have made Delhi’s high-end residential properties an attractive investment option for domestic and international buyers alike. Locations such as Lutyens’ Delhi, Vasant Vihar, and Golf Links continue to command premium prices, while newly developed luxury projects in Gurugram are offering modern amenities at comparatively lower costs.

Bengaluru: The Most Affordable Luxury Market

Among India’s top cities, Bengaluru offers the most space for $1 million, with 370 sq. m. (3,982 sq. ft.) available in 2024—9% more than in previous years. The city’s growth as a technology hub, influx of expatriates, and rising demand for premium housing have contributed to a competitive yet relatively affordable luxury housing market.

Bengaluru’s property market benefits from extensive infrastructure expansion, lower land costs compared to Mumbai and Delhi, and a growing appetite for spacious, high-end residences. Luxury villas and large apartments in key areas like Whitefield, Indiranagar, and Koramangala have gained popularity among affluent buyers looking for premium living spaces. Gated communities with world-class amenities, such as golf courses, private pools, and smart home technology, are also becoming key attractions.

India in the Global Luxury Housing Market

The Knight Frank Prime International Residential Index (PIRI 100) places India’s cities in a competitive position globally.

• Delhi ranks 18th globally in luxury housing price growth, up from 37th place in 2023, reflecting a 6.7% annual growth.
• Mumbai ranks 21st, slipping 13 spots from its previous position.
• Bengaluru ranks 40th, a notable improvement from its 59th position last year.

In comparison, Monaco remains the world’s most expensive real estate market, where $1 million can buy only 19 sq. m. of space. Other global cities such as Hong Kong (22 sq. m.) and Singapore (32 sq. m.) continue to see intense price appreciation, limiting affordability for luxury homebuyers.

Luxury Real Estate Trends in India

According to Knight Frank’s report, the strengthening of the US dollar has increased the relative affordability of Indian luxury real estate in global terms. This trend has made Indian cities more attractive to international buyers and NRIs seeking to invest in high-value properties.

According to Shishir Baijal, Chairman and Managing Director of Knight Frank India, the demand for luxury housing in Delhi and Bengaluru is increasing due to infrastructure development, economic growth, and growing investor confidence. He noted that the improved rankings of these cities highlight their rising appeal in the global luxury real estate market.

What’s Driving Luxury Housing Growth?

Several key factors contribute to the increasing prominence of Indian cities in the luxury property segment:

• Infrastructure Expansion – Improved metro connectivity, new expressways, and urban renewal projects are enhancing the desirability of luxury neighborhoods.
• Economic Growth – With India’s economy on an upward trajectory, more HNWIs are investing in high-end properties.
• Foreign Investment & NRI Interest – The depreciation of the rupee against the dollar has made Indian properties more attractive to global investors.
• Changing Buyer Preferences – Affluent buyers are prioritizing larger, premium residences with world-class amenities, particularly post-pandemic.
• Technology-Driven Developments – Smart homes with integrated automation, AI-based security systems, and sustainable construction materials are redefining luxury living in India.
• Luxury Branded Residences – The rise of tie-ups between real estate developers and global luxury brands has increased the appeal of ultra-premium properties.

Future Outlook

As luxury real estate in India continues to evolve, Mumbai, Delhi, and Bengaluru are emerging as strong contenders in the global market. While Mumbai remains the costliest city, Delhi and Bengaluru offer better affordability and higher appreciation potential for buyers. The next decade is expected to bring even more opportunities as the luxury segment integrates cutting-edge technology, sustainable construction, and global architectural influences, further elevating the status of Indian cities in the international real estate market.