Vehicles pass through a colourfully lit and tastefully decorated Brigade Road.
Credit: DH Photo
Bengaluru: Bengaluru has seen the highest price growth for prime residential properties and is ranked fourth among the top 15 cities globally. The city has also overtaken Mumbai, and Delhi in the price growth recording a year-on-year growth of 10.2 per cent. Mumbai and Delhi have recorded 8.7 per cent, and 3.9 per cent growth in prices respectively, according to Knight Frank's latest Prime Global Cities Index (PGCI) released on Monday.
Knight Frank studied 46 cities globally for creating this index. Seoul (25.2per cent price growth), Tokyo (16.3 per cent), and Dubai (15.8 per cent) are ahead of Bengaluru in the ranking, while Mumbai, and Delhi have taken the 6th and 15th position respectively.
Despite a global cooling in prime residential price growth - averaging 2.3 per cent annually compared to 3.5 per cent in Q1 2025 - Indian cities remain resilient, reflecting strong demand, limited prime supply, and sustained wealth creation in urban centres, Knight Frank said.
"Bengaluru's price growth is mainly due to sustained job creation by global capability centres, and startups which led to demand for office market. Further, the office market growth leads to demand for residential properties," Vivek Rathi, National Director-Research, Knight Frank told DH.
He said startups have created huge wealth after they unlocked value by listing on capital markets which in turn led to demand for prime residential properties in Bengaluru. Another reason is that the prime properties in Bengaluru are relatively cheaper compared to similar properties in Mumbai and Gurugram. Prime properties in Bengaluru are priced in the range of Rs 25,000 to Rs 30,000 per sq feet as against Rs 75,000 per sq feet in Mumbai's prime areas, Rathi said.
In Bengaluru, properties located on Brigade Road, Cubbon Park area, South Delhi and Golf Course Extension in Delhi and Napean Sea Road, Malabar Hill in Mumbai are considered prime residential markets.
Shishir Baijal, chairman and managing director, Knight Frank India, said, “India’s prime residential markets have shown remarkable resilience, standing out in a year when global growth momentum has eased. Bengaluru’s tech-driven wealth creation, Mumbai’s renewed infrastructure-led appeal, and Delhi’s steady luxury demand have collectively kept India in the global spotlight. We anticipate that continued economic stability, urban redevelopment, and the appeal of prime assets as long-term wealth stores will support price growth in the months ahead.”