Bengaluru Surprises the World: Ranks 4th in Prime Property Growth
Bengaluru has emerged as the fourth-fastest-growing prime housing market globally, with a 10.2% annual price increase, according to Knight Frank's Q2 2025 index. Mumbai and Delhi also made the list, ranking 6th and 15th, respectively.
BengaluruPrime PropertyReal EstateKnight FrankGlobal CitiesReal Estate NewsAug 19, 2025
Mumbai, India's financial capital, ranks 6th in the list, while Delhi, the national capital, stands at 15th place. According to Knight Frank's Prime Global Cities Index (PGCI) Q2 (April-June) 2025 report, Seoul leads the pack with an impressive annual appreciation of 25.2% in prime residential properties. Tokyo follows closely at second place with a 16.3% appreciation, and Dubai takes the third spot with a 15.8% annual appreciation.
The Prime Global Cities Index is a valuation-based index that tracks the movement of prime residential prices across 46 cities worldwide. It provides a comprehensive overview of the global real estate market, highlighting trends and opportunities for investors and developers.
In India, Bengaluru has witnessed a significant 10.2% increase in the prices of prime housing properties. Mumbai and Delhi have also shown positive growth, with Mumbai experiencing an 8.7% increase and Delhi a 3.9% increase. These figures reflect the resilience of Indian cities in the face of global economic challenges.
Knight Frank's report indicates that the average global prime residential prices rose by 2.3% in the 12 months leading up to June 2025. However, this growth rate is a decline from the 3.5% recorded in Q1 2025. Despite this global cooling, Indian cities continue to perform well, driven by strong demand, limited prime supply, and sustained wealth creation in urban centers.
The consultant noted that the resilience of Indian cities is a positive indicator for the future of the real estate market. '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, reflecting strong demand, limited prime supply, and sustained wealth creation in urban centres,' the report stated.
Bengaluru's success in the prime property market is particularly noteworthy, as it highlights the city's appeal to both domestic and international investors. The city's tech-driven economy, coupled with its vibrant lifestyle and cultural offerings, makes it an attractive destination for high-net-worth individuals and families.
In conclusion, the Prime Global Cities Index Q2 2025 report underscores the dynamic nature of the global real estate market and the strategic importance of Indian cities like Bengaluru, Mumbai, and Delhi. As these cities continue to grow and develop, they are likely to maintain their positions as key players in the international real estate landscape.
Frequently Asked Questions
What is the Prime Global Cities Index (PGCI)?
The Prime Global Cities Index (PGCI) is a valuation-based index that tracks the movement of prime residential prices across 46 cities worldwide. It provides insights into the global real estate market, highlighting trends and opportunities for investors and developers.
Which city ranks first in the PGCI Q2 2025 report?
Seoul ranks first in the PGCI Q2 2025 report with an annual appreciation of 25.2% in prime residential properties.
What is the annual price increase of prime housing properties in Bengaluru?
Bengaluru has witnessed a 10.2% annual price increase in prime housing properties, according to the PGCI Q2 2025 report.
Why are Indian cities like Bengaluru, Mumbai, and Delhi performing well in the global real estate market?
Indian cities are performing well due to strong demand, limited prime supply, and sustained wealth creation in urban centers. These factors make them attractive for both domestic and international investors.
What is the average global prime residential price growth in the 12 months to June 2025?
The average global prime residential price growth in the 12 months to June 2025 is 2.3%, according to Knight Frank's report.
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