Delhi and Bengaluru Climb Global Luxury Real Estate Rankings, Mumbai Falls: Knight Frank Report
According to the latest Knight Frank report, Delhi and Bengaluru have shown significant growth in the global luxury real estate market, while Mumbai has experienced a decline. The report highlights the changing dynamics of prime residential property in th
DelhiBengaluruLuxury Real EstateMumbaiKnight FrankReal EstateMar 05, 2025
Meanwhile, Mumbai has witnessed a decline, reflecting the complex and dynamic nature of the real estate sector in India.
The report, which tracks the performance of prime residential real estate in key cities around the world, highlights the growing demand for luxury properties in Delhi and Bengaluru.
These cities have attracted significant investments due to their robust economic growth, improved infrastructure, and increasing affluence among the local population.
In Delhi, the availability of luxury housing has increased, with developers focusing on high-end projects that cater to the elite segment of the market.
The capital city has seen a surge in the construction of high-rise apartments and premium residential complexes, offering modern amenities and exclusive facilities.
This has not only boosted the real estate market but has also attracted foreign investors looking for lucrative opportunities.
Bengaluru, known as the Silicon Valley of India, has also witnessed a strong surge in luxury real estate.
The city's tech-driven economy and growing number of high-net-worth individuals have driven the demand for premium properties.
The availability of land for development and the city's reputation as a hub for innovation and technology have made it an attractive destination for both domestic and international investors.
On the other hand, Mumbai has experienced a decline in the luxury real estate market.
The report indicates that the availability of prime residential space in Mumbai has decreased, with only 99 square meters of luxury property available, marking a decade-long decline of 2.6%.
This decline is attributed to the increasing cost of land, regulatory challenges, and a saturated market.
Despite these challenges, Mumbai remains a critical market for luxury real estate, with a strong focus on redevelopment and the creation of mixed-use projects.
The Knight Frank report also emphasizes the importance of infrastructure development in driving the growth of luxury real estate.
Cities like Delhi and Bengaluru have benefited from significant investments in infrastructure, including improved transportation networks, better connectivity, and the development of green spaces.
These improvements have not only enhanced the quality of life for residents but have also made these cities more attractive to investors.
Moreover, the report highlights the role of government policies in shaping the real estate market.
Initiatives such as the Real Estate (Regulation and Development) Act (RERA) and the Goods and Services Tax (GST) have brought greater transparency and accountability to the sector, making it more investor-friendly.
These reforms have also helped in addressing some of the long-standing issues in the real estate market, such as delays in project completion and disputes between developers and buyers.
In conclusion, the luxury real estate market in India is witnessing a significant transformation, with Delhi and Bengaluru emerging as key players.
While Mumbai faces challenges, the overall trend indicates a positive outlook for the sector, driven by economic growth, improved infrastructure, and favorable government policies.
Investors and developers are increasingly focusing on these cities, recognizing the potential for high returns and long-term growth in the luxury real estate market.
Frequently Asked Questions
What is the main reason for the growth of luxury real estate in Delhi and Bengaluru?
The growth of luxury real estate in Delhi and Bengaluru is primarily driven by robust economic growth, improved infrastructure, and increasing affluence among the local population. Both cities have attracted significant investments and are home to a growing number of high-net-worth individuals.
Why has the luxury real estate market in Mumbai declined according to the Knight Frank report?
The decline in the luxury real estate market in Mumbai is attributed to the increasing cost of land, regulatory challenges, and a saturated market. The availability of prime residential space has decreased, marking a decade-long decline of 2.6%.
What role does infrastructure development play in the luxury real estate market?
Infrastructure development plays a crucial role in the luxury real estate market by enhancing the quality of life for residents and making cities more attractive to investors. Investments in transportation networks, connectivity, and green spaces have particularly benefited cities like Delhi and Bengaluru.
How have government policies impacted the real estate sector in India?
Government policies such as the Real Estate (Regulation and Development) Act (RERA) and the Goods and Services Tax (GST) have brought greater transparency and accountability to the real estate sector. These reforms have addressed long-standing issues and made the sector more investor-friendly.
What is the future outlook for the luxury real estate market in India?
The future outlook for the luxury real estate market in India is positive, driven by economic growth, improved infrastructure, and favorable government policies. Cities like Delhi and Bengaluru are expected to continue their growth, while Mumbai will focus on redevelopment and mixed-use projects.
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