Synopsis– Bengaluru ranks among the top 5 positions in the Knight Frank Prime Global Cities Index (Q2 2025), confirming it is on the path to becoming one of the leading luxury real estate markets in the world. The growth has been driven by tech-led growth, wealth creation, and limited prime stock, and the city has also outperformed Mumbai, Delhi, and even several global markets with a year-on-year prime property price increase of 10.2%.
Bengaluru has made headlines worldwide by securing the 4th position in the Knight Frank Prime Global Cities Index (Q2 2025 Edition). This puts Bengaluru among the world’s leading prime residential hubs. This remarkable feature reflects upon the city’s rapid evolution into a major player in the luxury real estate at a global level. The Indian Silicon Valley has outpaced established markets like Mumbai, Delhi, and even some international heavyweights.
Bengaluru’s Rise in Prime Real Estate
According to the latest Knight Frank’s Index, Bengaluru’s prime residential real estate saw an annual price surge of 10.2%, which is the highest among all the Indian cities and also one of the fastest globally for the period ending June 2025. Out of the 46 major cities evaluated worldwide, only Seoul, Tokyo, and Dubai have reported a higher price appreciation than Bengaluru. The average annual growth for prime properties globally was a mere 2.3%, and this highlights the extraordinary performance of Bengaluru’s real estate market.
How is Bengaluru Leading the Change
Bengaluru is also know as the Indian Silicon Valley because of its tech ecosystem, which consists of a higher concentration of MNCs compared to other Indian cities, along with several other startups in the tech domain. The city has been successful in drawing a large number talented Global Tech individuals and High Net Worth Individuals (HNWI) into this leading start-up and tech-enabled city of India. Bengaluru shifted its lifestyle into a cosmopolitan one due to the tech sector, which led to a further upward demand for luxury real estate, which is particularly in areas alongside Brigade Road, Cubbon Park, and the luxury neighbourhoods which are located in south Bengaluru. This has been one of the major reasons for the robust price appreciation, with demand consistently going much higher than the supply.
Other reasons, according to Knight Frank’s Index, include-
- Robust demand from both domestic and international buyers
- Limited inventory of truly prime homes in central and other well-connected locations
- Occurrence of wealth creation, particularly through the technology sector
- Urban redevelopment and other infrastructure upgrades
This cocktail of influences has not just benefited Bengaluru, another Indian city Mumbai was ranked at the 6th place with an 8.7% appreciation, and Delhi secured the 15th spot with a 3.9% rise, as we can see all the three Indian cities have outpaced the global average.
| Top Global Prime Residential Markets in Q2 2025 | ||
| Rank | City | Annual Price Appreciation |
| 1 | Seoul | 25.2% |
| 2 | Tokyo | 16.3% |
| 3 | Dubai | 15.8% |
| 4 | Bengaluru | 10.2% |
| 6 | Mumbai | 8.7% |
| 15 | Delhi | 3.9% |
Also read: Top 7 Cities to Work in India 2025: Best Salaries, IT Hubs and Career Opportunities
Bengaluru Versus Global Prime Markets
As global luxury property price growth cools, Indian cities, such as Bengaluru, Mumbai, and Delhi, continue to defy the trend. In the second quarter of 2025, many established global markets saw very slow growth or some of them even saw a negative growth in their realty markets, with the worldwide average falling to 2.3% from its 3.5% in the first quarter. The resilience of the prime residential sector in India, especially in Bengaluru stands out and reflects up on strong local economic and demographic fundamentals.
Comparison With Leading International Markets
While Seoul and Tokyo have witnessed an impressive 25.2% and 16.3% prime realty growth respectively, these upsurges have often been affected due to specific local dynamics, currency changes, policy shifts, or other unique supply constraints. But in contrast, Bengaluru’s growth is anchored by sustained tech-driven demand, an expanding urban population, and the ongoing infrastructure improvements all across the city.
Notable Prime Locations in Bengaluru
- Brigade Road
- Cubbon Park area
- Koramangala
- Indiranagar
These areas consistently attract the ultra-rich individuals, successful entrepreneurs, and executives, especially due to the proximity to business hubs, quality of life, and other exclusive experiences.
Luxury Real Estate Beyond Bengaluru: India’s Big Cities on the Global Map
Mumbai, which has recently been ranked 6th on the same list, has seen its luxury market flourish due to infrastructure upgrades, new expressways, redeveloped sub urban areas and even the older ones such as Malabar Hills. While, Delhi’s luxury housing continues to witness a steady growth due to its exclusive enclaves, such as the Golf Course Extension that has been driving prime property demand high.
What’s Powering the Boom?
- Stability– India’s relatively stable economic and policy environment has always attracted investors.
- Affluence and wealth creation– Tech sector growth has been fuelling the luxury demand.
- Urban redevelopment– Better connectivity and urban upgrades have always attracted new buyers.
- National optimism– Despite the global turbulence, realty sentiment have remained bullish in India, especially among the affluent buyers.
Future Outlook
Knight Frank and other notable forecasters expect this upward momentum to continue, with Bengaluru to strengthen its ranking among the top global luxury property markets. Factors such as Urban redevelopment, growing infrastructure investments, and inflow of talented professionals are all going to sustain both demand and price resilience.
The Bottom Line
The Knight Frank Prime Global Cities Index confirms Bengaluru’s ranking as a luxury destination globally. Bengaluru’s growth driven by the tech sector and the city’s urban lifestyle characteristics and international connectivity are driving wider appeal for investment opportunities and executive living experiences. As worldwide prime residential markets have stabilized or slowed down, Bengaluru, along with other major Indian cities, provides global investors and prospective buyers a reason to place their next real estate investment here.
Written by Adithya Menon
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