Bengaluru Tops Global Luxury Real Estate Growth in 2025 Rankings

India’s Urban Luxe: Bengaluru’s Rise in the Global Prime Real Estate Arena

Amid the world’s shifting luxury real estate tides, Bengaluru has emerged as a dazzling hotspot, capturing the global spotlight and redefining how India’s cities are perceived. According to the Prime Global Cities Index (PGCI) Q2 2025 from Knight Frank, the tech city reached an impressive 4th spot globally by recording a striking 10.2% year-on-year surge in prime property values. Knight Frank states this stellar ascent is rooted in Bengaluru’s tech-powered wealth generation and dynamic influx of global talent.

The narrative of India’s luxury housing market is equally compelling in Mumbai and Delhi. Mumbai, renowned for its extensive urban infrastructure upgrades, now ranks 6th worldwide with an 8.7% jump in prime home values. Mumbai Property Exchange notes new expressways, revitalised suburbs, and seamless connectivity have all played pivotal roles. Not far behind, Delhi shines at 15th place, growing 3.9% on the resilience of steady luxury demand in the capital’s exclusive enclaves.

This ascent comes against a backdrop where many global luxury markets are cooling off. Knight Frank’s data highlights that average prime price growth globally slowed to 2.3% (from 3.5% in Q1), making India’s resilience and optimism especially striking. The report credits limited prime inventory, India’s growing urban affluence, and continued economic stability for sustaining this market momentum. Hindustan Times Real Estate further points to urban redevelopment and ongoing infrastructure upgrades as ongoing catalysts for luxury demand in Indian metros.

Shishir Baijal, chairman of Knight Frank India, emphasizes that Bengaluru’s tech-driven prosperity, Mumbai’s infrastructure boost, and Delhi’s luxury appetite collectively maintain India’s leadership in the international conversation. Liam Bailey, Knight Frank’s Global Head of Research, observes a more fragmented global market, where former high-growth hotspots are easing, but cities like Bengaluru and Mumbai shine brighter than ever. As borrowing cost expectations shift worldwide, India’s luxury sectors continue to defy the odds.

With technology wealth, connectivity, and aspirational demand fueling Indian luxury, these cities look poised to expand their prominence. As the world’s elite keeps an eye on Asia’s evolving real estate landscape, Indian metros stand tall, crafting new stories of global luxury and aspiration.

Key Performance: Indian Cities in Knight Frank’s 2025 Rankings

• Bengaluru: 4th globally, 10.2% annual growth
• Mumbai: 6th globally, 8.7% growth
• Delhi: 15th globally, 3.9% growth