Bengaluru: Rising as a Global Luxury Real Estate Titan.

Bengaluru: Rising as a Global Luxury Real Estate Titan

A New Benchmark in Prime Housing Growth

According to Knight Frank’s Prime Global Cities Index (PGCI) for Q2 2025, Bengaluru has surged to 4th place globally, boasting a 10.2% year‑on‑year increase in prime residential property values. 

Not far behind, Mumbai claimed the 6th spot with an 8.7% growth, while Delhi landed 15th at 3.9%.

This performance stands out against a backdrop of global cooling in luxury markets—average prime price growth slipped to 2.3% in Q2, down from 3.5% in Q1. Yet, Indian cities—particularly Bengaluru—remain resilient, supported by strong demand, limited supply of prime stock, and expanding urban wealth. 

What’s Fueling Bengaluru’s Ascent?

1. Tech-driven Wealth

• Bengaluru’s booming technology sector continues to create high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs), fueling demand for upscale residences. 

2. Infrastructure Upgrades

   • City-wide developments—from metro expansions to ring roads—are enhancing connectivity and convenience, adding value to prime neighborhoods.

3. End-user Demand & Limited Supply

• The index notes that many buyers are end-users rather than investors, leading to sustained demand amid limited prime availability. 

Contrasting Realities: Demand vs. Sales Dynamics

• Growing Luxury Appetite
  Bengaluru’s upper-mid housing segment (₹2–5 crore) soared 91% in 2024, outperforming both Mumbai and Delhi.

• Ultra-Luxury Transaction Highlights
  Several marquee property deals in 2024 crossed ₹50 crore, with high-profile buyers such as Infosys’ Narayana Murthy participating. 

• Record ₹10 crore+ Sales in FY25
  Luxury apartments priced ₹10 crore and above achieved over ₹1,000 crore in annual sales in FY25—the first time ever. Notably, Hebbal, Domlur, Sudhamnagar, and Bomanhalli emerged as new ultra-luxury hotspots.

• A Shift Toward Mid-Premium
  Despite the ultra-luxury surge, mid-premium housing (₹1–4 crore) remains the dominant force, signaling buying sensibilities that blend aspiration with pragmatic value.

• Mixed Signals on Sales Volume
  CBRE data indicates an 81% year-on-year drop in luxury housing sales (₹4 crore+) in Bengaluru during 2024—a stark contrast to its price growth. 

Why This Next-Gen Luxury Boom Matters

• Credibility & Investor Confidence
  Bengaluru’s global ranking reinforces its position as a credible destination for luxury real estate investment.

• Urban Evolution in Real Time
  The trend reflects the city’s economic transformation—from tech strengths to lifestyle elevation.

• Emerging Micro-Markets
  Shifting hotspots suggest developers and buyers are looking beyond traditional luxury enclaves, exploring locations with fresh growth potential.

• Balanced Growth Is Key
  While luxury segments are buoyant, the broader market remains grounded in mid-premium demand—signaling a more inclusive and sustainable real estate trajectory.

Final Thoughts

Bengaluru is winning global recognition, not just for the rapid appreciation of its luxury homes, but for the broader maturation of its housing market. With a robust tech economy, evolving infrastructure, and a diverse demand base, the city stands poised to redefine luxury living in India.