Bengaluru and Mumbai Crack Top 10 Global Luxury Markets; Prime Property Prices Surge Up to 9.4%: Report
The 20th edition of Knight Frank’s Wealth Report 2026 reveals a sharp surge in India’s luxury housing market, with Bengaluru and Mumbai breaking into the top 10 fastest-growing global markets. Bengaluru climbed 32 places to rank 8th globally, driven by a 9.4% YoY price rise, while Mumbai moved to 10th place as super-prime demand spiked.
- Republic Business
- 2 min read
India’s luxury residential markets surged in global prominence in 2025, with Bengaluru and Mumbai recording some of the highest price appreciations worldwide, according to Knight Frank’s Prime International Residential Index (PIRI 100) released on Thursday.
Bengaluru jumped from 40th to 8th position globally with a 9.4% year-on-year price increase. Mumbai followed, rising to 10th place from 21st in the previous year, supported by record sales of new-build homes priced above USD 2 million. Delhi also improved its standing, moving up to 17th place with a 6.9% price growth.
Purchasing Power Shrinks
The report noted that a stronger US dollar is buying less "prime" space in India's top metros. In Mumbai, USD 1 million is now sufficient to purchase just 96 square meters (sq m), compared to 99 sq m in 2024. In Delhi, the same amount secures 205 sq m, while in Bengaluru, it buys 357 sq m.
"The Rupee depreciated roughly 5.4%, but prime property prices in Mumbai, Delhi, and Bengaluru rose much faster, by 8.7%, 6.9%, and 9.4% respectively," Knight Frank noted. This price appreciation effectively wiped out any foreign exchange advantage for dollar-backed buyers.
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Global Scenario
Monaco retained its title as the world’s most expensive market, where USD 1 million buys a mere 16 sq m, followed by Hong Kong (23 sq m) and Geneva (28 sq m). Globally, Tokyo led the price growth charts with a 58.5% increase. Dubai remained a high-growth hub with a 25.1% rise.
Shishir Baijal, Chairman & Managing Director of Knight Frank India, attributed the trend to the steady rise of High-Net-Worth Individuals (HNWIs) within a robust Indian economy. "India remains well-positioned, offering strong long-term growth potential as luxury real estate continues to be driven by capital flows and evolving lifestyle preferences," Baijal said.