Bengaluru Ranks 4th Globally in Prime Property Price Growth: What Drives the Surge?
Bengaluru has outperformed Mumbai and Delhi to rank 4th globally in the annual price rise of premium homes, according to a report by real estate consultant Knight Frank.
BengaluruReal EstatePrime PropertyGlobal Cities IndexProperty PricesReal Estate MumbaiAug 19, 2025
Mumbai is at the 6th position, while Delhi stands at the 15th place. According to Knight Frank's Prime Global Cities Index (PGCI) Q2 (April-June) 2025 report, Seoul leads the pack with an annual appreciation of 25.2 per cent in prime residential properties. Tokyo follows closely at second place with a 16.3 per cent appreciation, and Dubai ranks third with a 15.8 per cent annual appreciation.
The Prime Global Cities Index is a valuation-based index that tracks the movement of prime residential prices across 46 cities worldwide. In India, Bengaluru has witnessed a 10.2 per cent increase in prices of prime housing properties, while Mumbai and Delhi have seen increases of 8.7 per cent and 3.9 per cent, respectively.
Knight Frank noted that the average global prime residential prices rose by 2.3 per cent in the 12 months leading up to June 2025. Despite a global cooling in prime residential price growth—averaging 2.3 per cent annually compared to 3.5 per cent in Q1 2025—Indian cities remain resilient. This resilience reflects strong demand, limited prime supply, and sustained wealth creation in urban centres.
Bengaluru's real estate market is particularly robust due to its status as a major IT hub and the presence of numerous multinational corporations. The city's infrastructure development, including the expansion of the metro and the improvement of road networks, has also played a crucial role in driving property prices up. Additionally, the city's young and dynamic population, coupled with a growing number of high-net-worth individuals, has fueled the demand for prime residential properties.
The rise in property prices in Bengaluru and other Indian cities is a testament to the country's economic growth and the increasing attractiveness of its urban centers to both domestic and international investors. However, this growth also poses challenges, such as the need for sustainable urban planning and affordable housing solutions to ensure that the benefits of economic development are shared equitably.
In conclusion, Bengaluru's performance in the Prime Global Cities Index underscores the city's position as a leading real estate market in India and globally. As the city continues to attract investment and talent, it is likely to maintain its strong position in the coming years.
Frequently Asked Questions
What is the Prime Global Cities Index?
The Prime Global Cities Index is a valuation-based index that tracks the movement of prime residential prices across 46 cities worldwide. It is compiled by real estate consultant Knight Frank.
Which city ranks first in the Prime Global Cities Index for Q2 2025?
Seoul ranks first in the Prime Global Cities Index for Q2 2025, with an annual appreciation of 25.2 per cent in prime residential properties.
What is the percentage increase in prime property prices in Bengaluru?
Bengaluru has witnessed a 10.2 per cent increase in prices of prime housing properties.
What factors contribute to the resilience of Indian cities in the global real estate market?
The resilience of Indian cities in the global real estate market is attributed to strong demand, limited prime supply, and sustained wealth creation in urban centers.
What challenges does the rise in property prices in Bengaluru pose?
The rise in property prices in Bengaluru poses challenges such as the need for sustainable urban planning and affordable housing solutions to ensure that the benefits of economic development are shared equitably.
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