Bengaluru has overtaken Mumbai to become the fourth fastest-growing city globally for prime residential property prices, according to Knight Frank’s Prime Global Cities Index (PGCI) for Q2 2025, as reported by Hindustan Times.
The city recorded a 10.2% year-on-year rise in prime property values, driven by tech-sector wealth. Mumbai followed at sixth place with 8.7% growth, supported by major infrastructure upgrades, while Delhi ranked 15th, posting a 3.9% increase due to steady demand for premium housing.
Globally, Seoul topped the rankings with a 25.2% annual increase, followed by Tokyo at 16.3% and Dubai at 15.8%. Knight Frank’s PGCI tracks movements in prime residential prices across 46 global cities using valuation-based data from its research network.
The report noted that, despite a slowdown in luxury housing markets worldwide—where average prime price growth eased to 2.3% annually from 3.5% in the first quarter—Indian cities have remained resilient. Strong demand, limited prime supply, and rising urban wealth have helped support property values.
Shishir Baijal, chairman and managing director of Knight Frank India, said Bengaluru’s tech-driven wealth, Mumbai’s infrastructure upgrades, and Delhi’s steady luxury demand have kept India in the global spotlight. He added that continued economic stability and urban redevelopment are likely to sustain growth in the months ahead.
Liam Bailey, global head of research at Knight Frank, said the global cooling reflects changing expectations for borrowing costs. “Prime markets are taking a collective breath. The recovery we have seen over recent quarters was aided by the expectation of lower borrowing costs, and with that timeline now extended, a cooling in price growth is inevitable. We’re seeing a more fragmented market, with some European cities showing surprising strength while former high-flyers in Asia begin to level off,” he said.