Bengaluru has emerged as India’s leader in prime residential property growth, recording a year-on-year rise of 10.2%, according to Knight Frank’s latest Prime Global Cities Index (PGCI). This places the city fourth worldwide, ahead of Mumbai and Delhi, which reported growth rates of 8.7% and 3.9% respectively.
Globally, Seoul (25.2%), Tokyo (16.3%), and Dubai (15.8%) claimed the top three spots. Among Indian metros, Mumbai ranked sixth while Delhi stood at fifteenth out of the 46 cities tracked.
Despite a global slowdown in prime residential price appreciation — now averaging 2.3% annually versus 3.5% in early 2025 — Indian markets remain robust. Experts attribute this to strong urban demand, limited supply, and rising wealth creation.
“Bengaluru’s surge is primarily driven by consistent job generation through global capability centres and startups, which not only expand the office sector but also fuel housing demand,” explained Vivek Rathi, National Director-Research at Knight Frank. He added that wealth unlocked by startups listing on capital markets has further boosted luxury housing purchases.
Another factor is affordability: Bengaluru’s prime properties, priced at ₹25,000–30,000 per sq. ft., remain far cheaper than Mumbai’s premium zones like Malabar Hill and Napean Sea Road, where rates touch ₹75,000 per sq. ft. Prime locations in Bengaluru include Brigade Road and Cubbon Park surroundings.
Knight Frank India CMD Shishir Baijal noted that India’s luxury housing resilience stands out globally, backed by tech-driven wealth, infrastructure upgrades, and steady luxury demand. He expects urban redevelopment and long-term asset appeal to sustain this momentum.