Mumbai remained India’s most expensive luxury residential market in 2025, where ₹10 crore can buy 1,033 sq ft of luxury homes, down by 3% from 1,066 sq ft last year, even as prices of homes in this segment continued to increase, according to Knight Frank’s Wealth Report 2026.
The same amount purchased 2,207 sq ft in Delhi (down from 2,239 sq ft a year ago) and 3,843 sq ft in Bengaluru (down from 3,983 sq ft), recording the sharpest annual decline among the three cities, the report said.
“The rupee depreciated by about 5.4%, amounting to more rupees per $ however prime property price per square foot (sq ft) in all three cities rose faster (Mumbai at about 8.7%, Delhi at 6.9% and Bengaluru at 9.4%) than that the foreign exchange gain, so the net sq m purchasable for $1 mn still fell as price appreciation of these cities outpaced the currency tailwind,” the report said.
In Hyderabad, homebuyers can purchase 5,360 sq ft of home compared to 5,414 sq ft in 2024, the report said.
Also Read: $1 million can buy a 1065 sq ft house in Mumbai and 2238 sq ft in Delhi: Report
Bengaluru records the highest luxury home price growth among Indian cities in 2025
The Wealth Report 2026 revealed the findings of Knight Frank’s Prime International Residential Index (PIRI 100), which covers price performance across 100 global luxury housing markets. It reported an average rise of 3.2% year-over-year (YoY) in prime residential prices in 2025, outperforming mainstream housing markets for the second consecutive year.
Bengaluru’s prime residential prices rose 9.4% year-on-year in 2025, making it one of the fastest-growing luxury housing markets globally, according to Knight Frank’s Wealth Report 2026.
The city climbed 32 places in PIRI 100, moving from 40th rank in 2024 to 8th in 2025.
Mumbai also posted strong gains, with prime residential prices increasing 8.7% year-on-year amid robust demand for premium and super-prime homes, including record new-build sales above $2 million. The city improved its ranking from 21st in 2024 to 10th in 2025.
Meanwhile, Delhi recorded a 6.9% rise in luxury home prices, helping it move up one place to 17th globally.
Among global markets, Tokyo led with a sharp 58.5% rise in prime residential prices, while China’s Guangzhou was among the weakest performers with a 12.2% decline. Regionally, the Middle East topped growth charts with an average increase of 9.4%, driven largely by Dubai’s 25.1% surge.
Latin America and the Caribbean recorded 4.7% growth, followed by Asia-Pacific and Europe with comparable gains of 3.6% and 3.3%, respectively. North America was the only region in negative territory, posting an average decline of 0.9% amid continued weakness in Canadian housing markets.
“India’s rise in the Prime International Residential Index (PIRI) highlights the growing strength of the luxury housing market, with Bengaluru, Mumbai and Delhi gaining prominence on the back of rising wealth and strong demand. The unabated growth in India’s economy has been instrumental in this growth in prime residential demand as the number of HNWIs and UHNWIs records a steady rise,” Shishir Baijal, international partner, chairman and managing director, Knight Frank India, said.
“Globally, markets such as Tokyo and Dubai reflect how luxury real estate continues to be driven by capital flows and evolving lifestyle preferences. India remains well-positioned within this landscape, offering strong long-term growth potential,” he said.
Mumbai dominates with the highest ultra-rich population in the country
The report also noted that India currently has the sixth-largest UHNWI population globally. Between 2021 and 2026, the country’s ultra-wealthy population expanded 63%, driven by wealth creation across technology, industrials and capital markets.
“Mumbai continues to dominate with its constituency of 35.4% UHNW or ultra-rich population in India. Delhi and Chennai have gained in their contribution to the ultra-rich population by 3% over the last 10 years. Hyderabad has also expanded its contribution by 1.3% since 2015,” it said.
