Bengaluru has climbed to the fourth spot globally for the highest annual rise in prime residential property prices, according to Knight Frank’s latest global index, trailing only Seoul, Dubai, and Tokyo as of March-end 2025.
The report shows that Bengaluru’s prime home prices surged by 8.3% from April 2024 to March 2025, topping all Indian cities. On a quarterly basis, the city recorded a 7.2% increase, driven largely by strong end-user demand and growing interest from domestic high-value buyers.
In comparison, Seoul led with an 18.4% rise, Dubai followed at 16.4%, and Tokyo grew 15.5%—the only cities with double-digit gains. Mumbai ranked fifth globally with 7.6% growth, while Delhi came in 15th with a 3.9% rise.
The average annual increase across 45 global cities stood at 2.8% in Q1 2025, down slightly from 3.2% in Q4 2024, highlighting an uneven global recovery. The long-term average stands higher at 5.3%, indicating subdued momentum in many markets.
Shishir Baijal, Chairman of Knight Frank India, noted that softening interest rates and growing buyer confidence are expected to sustain this demand for prime housing.
Meanwhile, Western markets like London and Toronto witnessed slight declines, even as Asia-Pacific and Middle Eastern cities continued to lead global price growth. A total of 72% of cities posted positive annual growth in Q1 2025.
Rising wealth and limited housing inventory are key drivers, though macroeconomic uncertainties still weigh on global investor sentiment.
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