Bengaluru Emerges as a Top Global City for Prime Residential Growth
Bengaluru has secured the 4th position in the Knight Frank Prime Global Cities Index, reflecting its rapid evolution into a leading luxury real estate market. The city's tech-led growth, wealth creation, and limited prime stock are key drivers of its success.
BengaluruReal EstateLuxury PropertyKnight FrankPrime ResidentialReal EstateAug 23, 2025
According to the latest Knight Frank’s Index, Bengaluru’s prime residential real estate saw an annual price surge of 10.2%, which is the highest among all the Indian cities and also one of the fastest globally for the period ending June 2025. Out of the 46 major cities evaluated worldwide, only Seoul, Tokyo, and Dubai have reported a higher price appreciation than Bengaluru. The average annual growth for prime properties globally was a mere 2.3%, and this highlights the extraordinary performance of Bengaluru’s real estate market.
Bengaluru is also known as the Indian Silicon Valley because of its tech ecosystem, which consists of a higher concentration of MNCs compared to other Indian cities, along with several other startups in the tech domain. The city has been successful in drawing a large number of talented Global Tech individuals and High Net Worth Individuals (HNWI) into this leading start-up and tech-enabled city of India. Bengaluru shifted its lifestyle into a cosmopolitan one due to the tech sector, which led to a further upward demand for luxury real estate, particularly in areas alongside Brigade Road, Cubbon Park, and the luxury neighbourhoods located in south Bengaluru. This has been one of the major reasons for the robust price appreciation, with demand consistently going much higher than the supply.
Other reasons, according to Knight Frank’s Index, include:
- Robust demand from both domestic and international buyers
- Limited inventory of truly prime homes in central and other well-connected locations
- Occurrence of wealth creation, particularly through the technology sector
- Urban redevelopment and other infrastructure upgrades
This cocktail of influences has not just benefited Bengaluru. Another Indian city, Mumbai, was ranked at the 6th place with an 8.7% appreciation, and Delhi secured the 15th spot with a 3.9% rise, as we can see all the three Indian cities have outpaced the global average.
As global luxury property price growth cools, Indian cities, such as Bengaluru, Mumbai, and Delhi, continue to defy the trend. In the second quarter of 2025, many established global markets saw very slow growth or some of them even saw a negative growth in their realty markets, with the worldwide average falling to 2.3% from its 3.5% in the first quarter. The resilience of the prime residential sector in India, especially in Bengaluru, stands out and reflects up on strong local economic and demographic fundamentals.
While Seoul and Tokyo have witnessed an impressive 25.2% and 16.3% prime realty growth respectively, these upsurges have often been affected due to specific local dynamics, currency changes, policy shifts, or other unique supply constraints. But in contrast, Bengaluru’s growth is anchored by sustained tech-driven demand, an expanding urban population, and the ongoing infrastructure improvements all across the city.
Notable prime locations in Bengaluru include:
- Brigade Road
- Cubbon Park area
- Koramangala
- Indiranagar
These areas consistently attract the ultra-rich individuals, successful entrepreneurs, and executives, especially due to the proximity to business hubs, quality of life, and other exclusive experiences.
Mumbai, which has recently been ranked 6th on the same list, has seen its luxury market flourish due to infrastructure upgrades, new expressways, redeveloped suburban areas, and the older ones such as Malabar Hills. While Delhi’s luxury housing continues to witness a steady growth due to its exclusive enclaves, such as the Golf Course Extension that has been driving prime property demand high.
Stability, affluence and wealth creation, urban redevelopment, and national optimism are all factors powering the boom in Bengaluru’s luxury real estate market. India’s relatively stable economic and policy environment has always attracted investors. Tech sector growth has been fuelling the luxury demand. Better connectivity and urban upgrades have always attracted new buyers. Despite the global turbulence, realty sentiment has remained bullish in India, especially among the affluent buyers.
Knight Frank and other notable forecasters expect this upward momentum to continue, with Bengaluru to strengthen its ranking among the top global luxury property markets. Factors such as urban redevelopment, growing infrastructure investments, and inflow of talented professionals are all going to sustain both demand and price resilience.
The Knight Frank Prime Global Cities Index confirms Bengaluru’s ranking as a luxury destination globally. Bengaluru’s growth driven by the tech sector and the city’s urban lifestyle characteristics and international connectivity are driving wider appeal for investment opportunities and executive living experiences. As worldwide prime residential markets have stabilized or slowed down, Bengaluru, along with other major Indian cities, provides global investors and prospective buyers a reason to place their next real estate investment here.
Frequently Asked Questions
Why has Bengaluru seen such a significant increase in prime property prices?
Bengaluru's significant increase in prime property prices is driven by its tech-led growth, wealth creation, and limited prime stock. The city's tech ecosystem attracts a large number of talented individuals and high net worth individuals, leading to a high demand for luxury real estate.
How does Bengaluru compare to other global cities in terms of prime property growth?
Bengaluru ranks 4th in the Knight Frank Prime Global Cities Index, with an annual price surge of 10.2%. Only Seoul, Tokyo, and Dubai have reported higher price appreciation, making Bengaluru one of the fastest-growing prime residential markets globally.
What are the key factors contributing to Bengaluru's real estate boom?
The key factors contributing to Bengaluru's real estate boom include robust demand from domestic and international buyers, limited inventory of prime homes in central locations, wealth creation through the tech sector, and urban redevelopment and infrastructure upgrades.
Which areas in Bengaluru are particularly attractive for luxury real estate?
Notable prime locations in Bengaluru include Brigade Road, Cubbon Park area, Koramangala, and Indiranagar. These areas attract ultra-rich individuals, successful entrepreneurs, and executives due to their proximity to business hubs, quality of life, and exclusive experiences.
What is the future outlook for Bengaluru's luxury real estate market?
The future outlook for Bengaluru's luxury real estate market is positive, with forecasters expecting the upward momentum to continue. Factors such as urban redevelopment, growing infrastructure investments, and the inflow of talented professionals will sustain both demand and price resilience.
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