Knight Frank’s Prime Global Cities Index: New Delhi and Mumbai Among Top 10 Global Luxury Real Estate Markets
New Delhi and Mumbai have secured the sixth and seventh positions, respectively, in Knight Frank's Prime Global Cities Index Q4 2024. Bengaluru has also seen a notable rise, moving up to the 13th position. The index, which tracks prime residential price movements across 44 global cities, provides insights into trends in luxury real estate markets.
New Delhi Leads in India with 6.7% Price Growth
New Delhi recorded the highest price appreciation for luxury properties in India at 6.7% year-on-year. The city moved up from the 16th position in Q4 2023 to sixth in Q4 2024. Mumbai followed with a 6.1% increase, securing the seventh rank. Bengaluru advanced from the 27th position in Q4 2023 to the 13th spot in Q4 2024, with an annual price increase of 4.1%.
Global Rankings: Seoul and Manila Lead
Seoul topped the index with an 18.4% rise in prime residential prices, followed by Manila (17.9%), Dubai (16.9%), Tokyo (12.7%), and Nairobi (8.3%). The overall global prime residential price index saw a 3.2% increase across the 44 tracked markets for the 12-month period ending December 2024. Of these, 34 cities reported positive price growth, indicating a general upward trend in luxury housing demand and investment.
Market Trends and Economic Influences
The rise in luxury real estate prices reflects economic stability and a growing interest in high-value properties. Several factors have contributed to this trend, including increased demand for premium living spaces, economic growth, and favorable financing options. In India, the stable economy and changing consumer preferences toward high-end housing have driven price appreciation in prime locations.
Shishir Baijal, Chairman and Managing Director at Knight Frank India, attributed the price growth to increased demand in the prime residential segment. He noted that homebuyers are focusing on lifestyle upgrades, supported by economic stability and positive market sentiment. The availability of high-quality residential projects, improved infrastructure, and increased investments in real estate have further fueled demand in metropolitan areas.
Asia-Pacific Performance in Q3 2024
Earlier, in Q3 2024, Mumbai and Delhi-NCR were among the top cities in the Asia-Pacific region for annual price growth in luxury housing. Mumbai ranked third with an 11.5% increase, while Delhi was fifth with a 6.5% rise. The continued demand for luxury residences in these cities is a result of both domestic and international investments, along with an increasing preference for high-end real estate assets.
The report suggests that sustained interest in prime residential properties will likely continue, driven by urbanization, wealth creation, and a preference for real estate as an asset class. Investors and homebuyers seeking long-term value retention are increasingly looking at luxury real estate as a secure investment option.
The Indian real estate sector is expected to maintain its momentum in the coming quarters. Market experts predict that the demand for luxury housing will remain strong, supported by infrastructure development, policy support, and an increasing number of high-net-worth individuals. The growth in this segment is also driven by expanding commercial hubs and improved connectivity in major cities.
While challenges such as rising interest rates and regulatory changes could impact short-term price movements, the long-term outlook for prime residential markets remains positive. Cities like New Delhi, Mumbai, and Bengaluru are positioned to benefit from sustained economic growth and increasing investor confidence.
