Bengaluru Shines as a Global Luxury Real Estate Hotspot; Ranks 4th in Prime Housing Growth
Bengaluru, Mumbai, and Delhi have emerged as global leaders in luxury real estate, ranking 4th, 6th, and 15th respectively in Knight Frank’s Prime Global Cities Index for Q2 2025, despite a global slowdown in luxury property price growth.
Luxury Real EstatePrime HousingBengaluruMumbaiDelhiReal Estate NewsAug 18, 2025
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.
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.
Bengaluru’s tech-driven wealth has been a significant factor in its performance. The city, often referred to as the 'Silicon Valley of India,' continues to attract top talent and investment. This influx of wealth has fueled the demand for luxury properties, making it a sought-after destination for high-net-worth individuals.
Mumbai, on the other hand, has seen substantial infrastructure developments, including the completion of major projects like the Bandra-Worli Sea Link and the Mumbai Metro. These improvements have not only enhanced the city’s connectivity but have also increased the appeal of prime residential areas.
Delhi, while not showing the same level of growth as Bengaluru and Mumbai, has maintained steady demand for luxury properties. The city’s status as the national capital and its robust economic activity continue to support the luxury real estate market.
In conclusion, while the global luxury real estate market is experiencing a slowdown, Indian cities like Bengaluru, Mumbai, and Delhi have shown remarkable resilience. Their ability to attract wealth and investment, coupled with ongoing infrastructure and urban development, positions them well for continued growth in the future.
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 featured in the top 15 of the PGCI for Q2 2025?
Bengaluru, Mumbai, and Delhi featured in the top 15 of the PGCI for Q2 2025, ranking 4th, 6th, and 15th respectively.
What factors contributed to Bengaluru’s strong performance in the PGCI?
Bengaluru’s tech-driven wealth and its reputation as the 'Silicon Valley of India' have been significant factors in its strong performance in the PGCI.
How has infrastructure development impacted Mumbai’s luxury real estate market?
Infrastructure developments such as the Bandra-Worli Sea Link and the Mumbai Metro have enhanced the city’s connectivity and increased the appeal of prime residential areas, contributing to Mumbai’s growth in the luxury real estate market.
What has sustained the demand for luxury properties in Delhi?
Delhi’s status as the national capital and its robust economic activity have sustained the demand for luxury properties, despite not showing the same level of growth as Bengaluru and Mumbai.
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