India’s luxury housing surges, $1 million stretch shrinks across metros

MUMBAI: Prime residential prices in India continued to rise in 2025, reducing the space $1 million can buy across Mumbai, Delhi and Bengaluru, even as all three cities improved their global rankings, showed Knight Frank’s Prime International Residential Index.

A budget of $1 million can now buy 1,033 sq ft in Mumbai, down from 1,066 sq ft in 2024 reflecting a 3% year-on-year price increase. In Delhi, the same amount can fetch 2,207 sq ft, compared with 2,239 sq ft last year, marking a 1.4% rise.

Bengaluru recorded the steepest change of 3.5%, with purchasable space declining to 3,843 sq ft from 3,983 sq ft.


Globally, Monaco retained its position as the most expensive prime residential market, where $1 million buys just 172 sq ft.

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“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, CMD, Knight Frank India.

City	How many square Ft USD 1m buys in 2025	How many square ft USD 1m buys in 2024	How many square ft USD 1m buys in 2020
Monaco	172	205	183
Hong Kong	248	237	248
Geneva	301	355	398
Singapore	301	344	388
London	355	366	334
New York	366	366	377
Los Angeles	388	398	538
Tokyo	398	624	667
Paris	398	452	452
Vienna	420	484	441
Sydney	452	484	474
Shanghai	474	474	538
Milan	495	560	646
Miami	624	624	1,044
Berlin	635	743	710
Dubai	667	840	1,970
Madrid	807	958	1,001
Lisbon	861	990	1,001
Melbourne	893	936	850
Mumbai	1,033	1,066	1,130

The PIRI 100, which tracks 100 global luxury housing markets, recorded an average 3.2% year-on-year increase in prime residential prices in 2025, outperforming mainstream housing for the second consecutive year. Of the 100 markets, 73 registered price growth while 24 saw declines, indicating uneven global performance.

“In many markets, prime residential property has pulled away from the broader housing sector, underpinned by the strength of wealth creation. While mainstream markets remain exposed to wider economic pressures, the pace at which wealth is being generated is helping to keep demand for luxury property more resilient, even against recent volatility in debt costs,” said Liam Bailey, global head of research at Knight Frank.

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Indian cities also saw an improvement in rankings. Bengaluru emerged as a standout performer, jumping 32 places from 40th in 2024 to 8th in 2025, supported by a 9.4% increase in luxury residential prices. Mumbai moved up from 21st to 10th position with an 8.7% rise, driven by strong demand in prime and super-prime segments, including record new-build sales above $2 million. Delhi improved from 18th to 17th place, with prices rising 6.9% year-on-year.

India’s rising share in global wealth is reinforcing demand for prime residential assets. The country now accounts for 2.8% of the world’s ultra-high-net-worth individuals (UHNWIs) in 2026, up from just over 2% five years ago, with its trajectory continuing to strengthen.

The UHNWI population is projected to grow from 19,877 currently to 25,217 by 2031, making India the sixth-largest wealth market globally.

This expansion, driven by sustained wealth creation across technology, industrials and capital markets, is increasingly translating into deeper demand for luxury housing.

Regionally, the Middle East led with a 9.4% increase, 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. North America remained the only region in decline, falling 0.9%.