New Delhi Takes the Lead: Luxury Home Price Surge Outpaces Mumbai and Bengaluru
Mumbai, traditionally known for its expensive real estate, was placed seventh in the global rankings for luxury home price increases. However, New Delhi has surged ahead, recording a 6.7% year-on-year increase in prime residential prices.
New DelhiLuxury Real EstateKnight FrankMumbaiBengaluruReal Estate MumbaiFeb 11, 2025
These cities tend to dominate the conversation due to their sky-high property prices.
However, a surprising trend has emerged, with New Delhi taking the lead in the luxury housing market.
According to the latest report by Knight Frank, New Delhi has jumped to the sixth position globally in the luxury home price surge, recording a 6.7% increase in prime residential prices in the December quarter of 2024.
This significant leap from the 16th position in the December quarter of 2023 is attributed to the growing demand from wealthy homebuyers and the overall economic strength of the country.
Knight Frank's ‘Prime Global Cities Index Q4 2024’ report, released on Monday, tracks changes in luxury residential property prices across 44 cities worldwide.
The index provides insights into the performance of high-end housing markets globally.
New Delhi’s strong price growth is particularly noteworthy, as it outpaces Mumbai, which was placed seventh with a 6.1% year-on-year increase in luxury home prices.
Bengaluru, another major player in the Indian real estate market, climbed from 27th place in Q4 2023 to 13th place in Q4 2024, recording an annual price increase of 4.1% in its prime housing segment.
Globally, Seoul topped the list with an 18.4% increase in average luxury home prices during the October-December 2024 period, followed by Manila (17.9%), Dubai (16.9%), Tokyo (12.7%), and Nairobi (8.3%).
New Delhi’s sixth position is a significant achievement, placing it ahead of several key global markets.
Despite concerns over high interest rates, luxury real estate markets worldwide have shown resilience.
The Prime Global Cities Index recorded an average 3.2% increase in prime residential prices across the 44 cities tracked in the report.
A total of 34 cities saw positive growth in the luxury home segment during the 12-month period ending December 2024.
Liam Bailey, Global Head of Research at Knight Frank, noted that high inflation in developed economies has made it challenging for central banks to lower interest rates.
However, experts predict that interest rate cuts will begin in 2025, which could lead to even higher price growth in the luxury housing market.
The rise in luxury home prices in India reflects the growing demand for high-end properties.
Wealthy buyers are increasingly prioritizing luxury upgrades, driven by a stable economy and strong market sentiment.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, stated that the sharp increase in prime property prices in India is a clear indicator of the strong demand in the country’s luxury housing market.
He added that as more homebuyers seek lifestyle upgrades, luxury home prices are likely to continue rising in the near future.
Knight Frank, a leading global real estate consultancy, provides comprehensive research and advisory services to clients in the real estate sector.
The company’s expertise in tracking and analyzing real estate trends makes it a reliable source for insights into the performance of high-end housing markets.
In conclusion, New Delhi’s surge in luxury home prices is a testament to the city’s growing appeal in the premium housing market.
As the economic environment continues to strengthen, the demand for luxury properties is expected to remain robust, further driving price appreciation in the coming years.
Frequently Asked Questions
Why has New Delhi surpassed Mumbai in luxury home price growth?
New Delhi has surpassed Mumbai due to the growing demand from wealthy homebuyers looking for luxury upgrades and the overall economic strength of the country. The city saw a 6.7% year-on-year increase in prime residential prices in the December quarter of 2024.
What is the Prime Global Cities Index?
The Prime Global Cities Index is a report by Knight Frank that tracks changes in luxury residential property prices across 44 cities worldwide. It provides insights into the performance of high-end housing markets globally.
Which city topped the global list for luxury home price increase in Q4 2024?
Seoul topped the list with an 18.4% increase in average luxury home prices during the October-December 2024 period.
How did Bengaluru perform in the luxury home price rankings?
Bengaluru climbed from 27th place in Q4 2023 to 13th place in Q4 2024, recording an annual price increase of 4.1% in its prime housing segment.
What is the expected trend in luxury home prices in 2025?
Experts predict that interest rate cuts will begin in 2025, which could lead to even higher price growth in the luxury housing market, driven by strong market sentiment and economic stability.
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