Bengaluru, Mumbai, and Delhi Shine in Global Luxury Real Estate Rankings
Bengaluru, Mumbai, and Delhi have emerged as top performers in Knight Frank's Prime Global Cities Index (PGCI) for Q2 2025, defying the global slowdown in luxury housing markets.
Luxury Real EstateBengaluruMumbaiDelhiKnight FrankReal EstateAug 18, 2025
Bengaluru, driven by a surge in tech wealth, secured the 4th spot with a 10.2% year-on-year increase in prime property values. Mumbai, bolstered by significant infrastructure upgrades, ranked 6th with an 8.7% growth rate. Delhi, maintaining steady luxury demand, placed 15th with a 3.9% increase. These achievements highlight the robust economic and urban development dynamics in these cities.
Globally, Seoul led the rankings with a sharp 25.2% annual increase, followed by Tokyo (16.3%) and Dubai (15.8%). 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.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, attributed Bengaluru’s tech-driven wealth, Mumbai’s infrastructure upgrades, and Delhi’s steady luxury demand to India’s strong performance. He emphasized that continued economic stability and urban redevelopment will likely sustain growth in the months ahead.
Liam Bailey, Global Head of Research at Knight Frank, observed that the global cooling in luxury markets reflects shifting expectations on borrowing costs. “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.
The resilience of Indian cities in the face of global economic challenges underscores the potential for continued growth in the luxury real estate sector. As urban development and economic stability remain key drivers, investors and homeowners can look forward to a promising future in these markets.
Frequently Asked Questions
What is the Prime Global Cities Index (PGCI)?
The Prime Global Cities Index (PGCI) is a report by Knight Frank that tracks movements in prime residential prices across 46 global cities using valuation-based data from its research network.
Which Indian cities ranked in the top 15 of the PGCI for Q2 2025?
Bengaluru, Mumbai, and Delhi ranked 4th, 6th, and 15th respectively in the PGCI for Q2 2025.
What factors contributed to Bengaluru's strong performance in the PGCI?
Bengaluru's strong performance in the PGCI is attributed to its tech-driven wealth, which has led to a 10.2% year-on-year increase in prime property values.
How did infrastructure upgrades impact Mumbai's ranking?
Mumbai's infrastructure upgrades played a crucial role in its 6th place ranking, contributing to an 8.7% growth in prime property values.
What is the global trend in luxury housing markets according to the PGCI?
Globally, luxury housing markets have shown a slowdown, with average prime price growth easing to 2.3% annually from 3.5% in Q1. However, Indian cities have remained resilient.
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