Bengaluru Luxury Housing Market Sees Significant Price Surge
The luxury housing market in Bengaluru is witnessing a significant price surge, reducing the space that $1 million can buy. Despite this, the city has climbed global rankings for price growth, according to Knight Frank's latest Wealth Report.
India's Ultra-Wealthy Population Expands, Driving Demand in Luxury Real Estate
- The number of individuals with a net worth above $30 million in India has risen 63% between 2021 and 2026, making India the sixth-largest UHNWI base globally.
- Bengaluru accounts for about 10.6% of India's ultra-high net-worth individuals, while Mumbai continues to dominate with a 35.4% share.
City Ranked 8th in Global Prime Residential Markets
Bengaluru emerged as one of the fastest-growing prime residential markets globally, climbing 32 places to rank 8th among 100 cities tracked in Knight Frank's Prime International Residential Index (PIRI 100).
Other Indian Cities Post Strong Gains
- Mumbai recorded an 8.7% increase in prime residential prices, improving its ranking to 10th from 21st a year ago.
- Delhi saw a 6.9% rise, moving up marginally to 17th position.
Globally, Luxury Real Estate Continues to Grow
Monaco retained its position as the most expensive prime residential market, where $1 million buys just 16 sq m, followed by Hong Kong (23 sq m) and Geneva (28 sq m).
Expert Insights
According to Shishir Baijal, International Partner, Chairman & Managing Director, Knight Frank India, "India's rise in the Prime International Residential Index highlights the growing strength of its luxury housing market, with Bengaluru, Mumbai and Delhi gaining global prominence on the back of rising wealth and strong demand."
Liam Bailey, global head of research at Knight Frank, added, "In many markets, prime residential property has pulled away from the broader housing sector, underpinned by the strength of wealth creation."
Looking Ahead
Knight Frank estimates India's UHNWI population will grow a further 27% to 25,217 by 2031, signalling sustained momentum for the country's luxury housing market.