Knight Frank's Prime Global Cities Index Q4 2024 has just released its latest findings, and it is an impressive surge in luxury home prices, especially in Indian cities such as Delhi, Mumbai, and Bengaluru. The global luxury housing markets are seeing an average price growth of 3.2% year-on-year, and these Indian cities are featuring prominently in the top 15 in the world.
New Delhi saw the most significant growth among Indian cities, securing the 6th position globally with a remarkable 6.7% increase in luxury home prices in the final quarter of 2024. This surge can largely be attributed to an influx of affluent homebuyers seeking high-end properties as part of a broader lifestyle upgrade. With such economic performance and resilience in good times and bad, it could not have become an attractive market place for investors other than that. Leap from 16th place in the previous quarter to 6th place is a good example of that ever-increasing demand for luxury properties.
Mumbai, India's financial capital, also witnessed a strong growth of 6.1% in prime residential prices, which puts it at the 7th position on the global index. The city’s appeal as a hub for the elite, combined with its booming business sector, continues to push demand for high-end homes. Whether for lifestyle or investment purposes, Mumbai remains a go-to destination for those seeking luxury living.
Bengaluru, often referred to as India’s Silicon Valley, made a dramatic climb from the 27th spot in Q4 2023 to 13th in Q4 2024, with a 4.1% year-on-year increase in luxury home prices. This rise reflects the city's rapid economic growth, strong technology sector, and increasing interest from both domestic and international investors in its luxury real estate market.
According to Shishir Baijal, Chairman of Knight Frank India, the demand surge in India's prime residential segment is driven by a growing focus on lifestyle upgrades. With the country's stable economic outlook and buoyant market sentiment, the luxury real estate sector is likely to continue its upward trajectory.
The performance of Delhi, Mumbai, and Bengaluru underscores India’s emerging dominance in the global luxury housing market. As these cities experience rapid urban development and attract high-net-worth individuals, their status as prime real estate hotspots is only set to strengthen.
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