India’s luxury housing market is getting more expensive—and fast. A new global comparison shows that $1 million now buys significantly less prime residential space in Indian cities than it did a year ago, reflecting strong demand and rising wealth at the top end of the market.According to Knight Frank’s Wealth Report 2026, $1 million can now buy 96 sq m in Mumbai, 205 sq m in Delhi, and 357 sq m in Bengaluru, all lower than last year despite a weaker rupee.
India still affordable globally—but gap is narrowing
Even with rising prices, Indian cities remain relatively affordable compared to global luxury hubs.
Monaco remains the world’s most expensive market, where $1 million buys just 16 sq m
Hong Kong: 23 sq m
How much prime property can USD 1mn buy
In contrast:
- Mumbai: 96 sq m
- Delhi: 205 sq m
- Bengaluru: 357 sq m
But the trend is clear: India is becoming steadily more expensive in the luxury segment
Prices rising faster than currency gains
Interestingly, even though the rupee depreciated by about 5.4%, which should technically make Indian property cheaper for dollar buyers, property prices rose even faster.
- Mumbai prices rose 8.7% YoY
- Delhi: 6.9% YoY
- Bengaluru: 9.4% YoY
This means:
The rupee depreciated 5.4%, amounting to more Rupees per USD however prime property price per square foot (sq ft)in all three cities rose faster (Mumbai ~8.7%, Delhi 6.9% and Bengaluru 9.4%) than that the foreign exchange gain
Luxury housing demand driving price surge
The rise in prices is being driven by strong demand in the premium segment.
Mumbai, in particular, has seen:
- Record sales in $2 million+ homes
- Strong demand for prime and super-prime properties
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At the same time, Bengaluru has emerged as a standout market, benefiting from:
- Tech wealth
- Startup founders
- High-income professionals
- India climbs global luxury property rankings
India’s growing wealth base is now visible in global rankings.
In Knight Frank’s Prime International Residential Index (PIRI 100):
- Bengaluru jumped 32 places to rank 8th globally, with 9.4% price growth
- Mumbai moved up to 10th place, with 8.7% growth
- Delhi climbed to 17th, with 6.9% growth
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% YoY in prime residential prices in 2025, outperforming mainstream housing markets for the second consecutive year.
Bengaluru recorded a standout performance, climbing 32 places from 40th in 2024 to 8th fastest growing market in 2025, supported by a robust 9.4% YoY increase in luxury residential prices. Mumbai’s prime residential prices surged by strong 8.7% YoY in 2025 on strong prime and super-prime demand, with record new-build sales above $2 mn. The city marked an upward movement in its ranking on PIRI from 21st in 2024 to 10th in 2025. Price appreciation of prime residential market of Delhi recorded 6.9% YoY increase in its prime residential market in 2025, improving its ranking by one place from 18th in 2024 to 17th in 2025.
Of the 100 markets tracked by PIRI, 73 recorded price growth while 24 registered declines, underscoring a highly uneven performance landscape. Average figures mask sharp divergences, with top-tier new-build apartments in Tokyo surging by 58.5%, while major Chinese cities such as Guangzhou saw prices fall by 12.2%. Regionally, the Middle East led with an average increase of 9.4%, driven largely by Dubai’s 25.1% rise. Latin America and the Caribbean followed with 4.7% growth, while Asia-Pacific (3.6%) and Europe (3.3%) posted comparable gains. In contrast, North America was the only region in negative territory, declining by an average of 0.9%, reflecting 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 record steady rise. 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,” said Shishir Baijal, International Partner, Chairman & Managing Director, Knight Frank India.
The PIRI 100: Luxury residential markets’ performance, annual price change (2024 – 2025)
