Bengaluru Ranks Among Top 5 Global Cities for Prime Residential Market Growth
Bengaluru has secured the 4th position in the Knight Frank Prime Global Cities Index (Q2 2025), driven by tech-led growth, wealth creation, and limited prime stock. The city outperforms Mumbai, Delhi, and several global markets with a year-on-year prime property price increase of 10.2%.
BengaluruReal EstateLuxury MarketKnight FrankTech SectorReal Estate MumbaiAug 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 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 even 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.
What’s powering the boom in Bengaluru and other major Indian cities includes:
- Stability: India’s relatively stable economic and policy environment has always attracted investors.
- Affluence and wealth creation: Tech sector growth has been fuelling the luxury demand.
- Urban redevelopment: Better connectivity and urban upgrades have always attracted new buyers.
- National optimism: 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 strengthening its ranking among the top global luxury property markets. Factors such as urban redevelopment, growing infrastructure investments, and the 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
What is the Knight Frank Prime Global Cities Index?
The Knight Frank Prime Global Cities Index is a quarterly report that tracks the performance of prime residential property markets in 46 major cities around the world. It measures the annual price changes of the most expensive 5% of homes in each city.
Why is Bengaluru ranked 4th in the Knight Frank Prime Global Cities Index?
Bengaluru is ranked 4th due to its robust 10.2% annual price appreciation in prime residential properties, driven by tech-led growth, wealth creation, and limited prime stock. The city outperforms other Indian and global markets in terms of luxury real estate demand and supply dynamics.
What are the key factors driving Bengaluru's luxury real estate market?
The key factors include robust demand from domestic and international buyers, limited inventory of prime homes in central and well-connected locations, wealth creation through the tech sector, and urban redevelopment and infrastructure upgrades.
How does Bengaluru compare to other Indian cities in the luxury real estate market?
Bengaluru outperforms other Indian cities like Mumbai and Delhi, which are ranked 6th and 15th respectively. Bengaluru's 10.2% annual price appreciation is higher than Mumbai's 8.7% and Delhi's 3.9%, reflecting its stronger economic and demographic fundamentals.
What is the future outlook for Bengaluru's luxury real estate market?
The future outlook is positive, with expectations of continued growth driven by urban redevelopment, growing infrastructure investments, and the inflow of talented professionals. Bengaluru is likely to strengthen its ranking among the top global luxury property markets.
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