Bengaluru, Mumbai, and Delhi Emerge as Global Luxury Real Estate Hotspots
Bengaluru, Mumbai, and Delhi have secured prominent positions in Knight Frank’s Prime Global Cities Index (PGCI) for Q2 2025, defying the global slowdown in luxury housing markets.
BengaluruLuxury Real EstatePrime HousingKnight FrankGlobal CitiesReal Estate MumbaiAug 18, 2025
Bengaluru ranked 4th worldwide with a 10.2% year-on-year rise in prime property values, while Mumbai placed 6th with 8.7% growth and Delhi 15th with 3.9%. Globally, Seoul led the rankings with a sharp 25.2% annual increase, followed by Tokyo (16.3%) and Dubai (15.8%), the report said.
Knight Frank’s PGCI tracks movements in prime residential prices across 46 global cities using valuation-based data from its research network. The report noted that despite a slowdown in luxury housing markets globally, where average prime price growth eased to 2.3% annually from 3.5% in Q1, Indian cities have remained resilient. Strong demand, limited prime supply, and rising wealth creation in urban centres have supported prices.
Shishir Baijal, chairman and managing director of Knight Frank India, said Bengaluru’s tech-driven wealth, Mumbai’s infrastructure upgrades, and Delhi’s steady luxury demand have kept India in the global spotlight. He said that continued economic stability and urban redevelopment will likely sustain growth in the months ahead.
Liam Bailey, Global Head of Research at Knight Frank, said the global cooling reflects shifting expectations on borrowing costs, with markets now showing a more fragmented pattern. “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.
Frequently Asked Questions
Which Indian cities are featured in the top 15 global prime housing markets?
Bengaluru, Mumbai, and Delhi are featured in the top 15 global prime housing markets according to Knight Frank’s Prime Global Cities Index (PGCI) for Q2 2025.
What is the ranking and growth rate of Bengaluru in the PGCI?
Bengaluru ranks 4th in the PGCI with a 10.2% year-on-year rise in prime property values.
How did Mumbai perform in the PGCI?
Mumbai ranked 6th with an 8.7% year-on-year growth in prime property values.
What is the position and growth rate of Delhi in the PGCI?
Delhi placed 15th with a 3.9% year-on-year growth in prime property values.
What factors are driving the growth in Indian luxury housing markets?
The growth in Indian luxury housing markets is driven by strong demand, limited prime supply, and rising wealth creation in urban centres, particularly tech-driven wealth in Bengaluru, infrastructure upgrades in Mumbai, and steady luxury demand in Delhi.
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