Bengaluru Surges to 4th in Global Residential Property Prices
Bengaluru has been ranked as the fourth-largest growing real estate market globally, according to Knight Frank’s Prime Global Cities Index Q2 2025. The city recorded a 10.2% annual growth rate, placing it alongside global hubs like Dubai, Tokyo, and Seoul.
Real EstateProperty PricesBengaluruKnight FrankGlobal Cities IndexReal EstateAug 19, 2025
The Prime Global Cities Index, a quarterly report by Knight Frank, tracks the performance of prime residential markets across 45 cities worldwide. The index measures the change in value of the most expensive 5% of homes in each city. Bengaluru's impressive growth rate of 10.2% is a testament to its status as a global tech hub, attracting both domestic and international investors.
Mumbai, India’s financial capital, secured the sixth rank with a 9.5% growth rate, demonstrating steady growth in the prime residential market. Delhi, on the other hand, is in the 15th slot, reflecting a more moderate growth rate. Overall, India’s prime residential markets continue to exceed global counterparts despite cooling global averages, which saw a 4.5% average growth rate in the second quarter of 2025.
Seoul, South Korea, tops the index with a 25.2% annual hike, indicating robust housing demand. The city's strong economic performance and growing population have contributed to this significant growth. Tokyo, Japan, follows closely with a 19.8% increase in home values over 12 months, making it Asia’s rising hotspot. Tokyo's growth is driven by a combination of economic stability and increasing demand for high-quality living spaces.
Dubai, UAE, ranks third with a 15.8% increase in property prices, continuing its reputation as a global luxury magnet. The city’s strategic location, world-class infrastructure, and tax-free status make it an attractive destination for both residents and investors. Other notable cities in the index include Manila, Philippines, which recorded a 9.6% annual growth rate, supported by rising incomes and urban development.
Bangkok, Thailand, saw property prices increase by 9.1%, driven by the post-pandemic tourism recovery. Madrid, Spain, recorded a yearly growth of 8.1%, indicating Europe’s growing investor interest. Nairobi, Kenya, and Zurich, Switzerland, also showed strong growth, with housing values increasing by 7.2% and 6.4%, respectively. These cities are emerging as key players in the global real estate market, driven by various economic and social factors.
The growth in Bengaluru's real estate market is not just a reflection of its economic success but also a result of the city's efforts to improve infrastructure and quality of life. The government's initiatives to enhance public transportation, develop new residential projects, and promote sustainable living have played a crucial role in attracting more residents and investors.
However, the rapid growth in property prices also poses challenges, such as affordability issues for first-time homebuyers and the need for more affordable housing options. Policymakers and real estate developers are working together to address these challenges and ensure that the growth is sustainable and inclusive.
In conclusion, Bengaluru’s ranking as the fourth-largest growing real estate market globally is a significant achievement that highlights the city's potential and attractiveness as a place to live, work, and invest. As the city continues to grow and develop, it is expected to maintain its position as a leading destination for prime residential properties.
Frequently Asked Questions
What is the Prime Global Cities Index?
The Prime Global Cities Index is a quarterly report by Knight Frank that tracks the performance of prime residential markets across 45 cities worldwide. It measures the change in value of the most expensive 5% of homes in each city.
What is Bengaluru's ranking in the Prime Global Cities Index Q2 2025?
Bengaluru is ranked fourth in the Prime Global Cities Index Q2 2025, with a 10.2% annual growth rate in residential property prices.
Which city tops the Prime Global Cities Index Q2 2025?
Seoul, South Korea, tops the Prime Global Cities Index Q2 2025 with a 25.2% annual growth rate in residential property prices.
What factors are driving the growth in Bengaluru's real estate market?
The growth in Bengaluru's real estate market is driven by its status as a global tech hub, increasing urbanization, and government initiatives to improve infrastructure and quality of life.
What challenges does the rapid growth in Bengaluru's property prices pose?
The rapid growth in property prices poses challenges such as affordability issues for first-time homebuyers and the need for more affordable housing options. Policymakers and developers are working to address these challenges.
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