Mumbai and Delhi rank among the fastest-growing luxury real estate markets in Asia-Pacific: Knight Frank

India’s real estate sector is experiencing a boom fueled by robust economic growth, infrastructure upgrades, and evolving lifestyle aspirations. A report by Knight Frank, ‘Quality Life-ing: Mapping Prime Residential Hotspots,’ highlights the rapid ascent of India’s prime residential markets, particularly in Mumbai, Delhi, and Bengaluru.

Mumbai Shines in the Luxury Market

Mumbai, India’s financial capital, has become the third fastest-growing prime residential market in Asia-Pacific (APAC). In Q3 2024, the city recorded an 11.5 per cent year-on-year (YoY) increase in luxury real estate prices, which now average $953 per square foot ( ₹79,413 per square foot).

With $1 million ( ₹8.37 crore), buyers can secure approximately 103 square meters of prime property in Mumbai. The surge is aligned with strong performances in Indian stock markets, which have reached historic highs. Mumbai’s rise highlights its position as a global finance and real estate hub.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, emphasised, “India’s residential real estate sector is experiencing remarkable growth, fueled by economic expansion, infrastructure advancements, and evolving consumer preferences.”

Delhi gains momentum

Delhi ranked fifth in APAC for annual price growth in Q3 2024, with a 6.5 per cent YoY increase. Luxury real estate prices in the national capital averaged $452 per square foot ( ₹37,780 per square foot). The city’s strategic importance and its appeal to high-net-worth individuals (HNWIs) are key drivers of growth.

Bengaluru’s consistent growth

Bengaluru, known as India’s tech hub, also ranked seventh in APAC with a 4.8 per cent YoY increase in luxury property prices. The city’s average prime residential real estate price is $255 per square foot ( ₹21,348 per square foot). Its burgeoning technology sector and cosmopolitan lifestyle continue to attract global and domestic investors.

APAC trends: A resilient market

The APAC prime residential market remains resilient despite challenges like higher interest rates and the lingering effects of the pandemic. The region recorded a 2.9 per cent YoY growth in Q3 2024, marking six consecutive quarters of positive price movement. Manila and Tokyo reported the highest annual price increases, with Manila witnessing a staggering 29.2 per cent surge and Tokyo 12.8 per cent.

India’s housing sector benefits from an impressive 87 per cent homeownership rate, the third highest in APAC, following Singapore and Vietnam. The country’s growth is further supported by its expanding economy, projected to grow by 7.2 per cent in FY 2025. Notably, premium housing sales in India surged by 41 per cent YoY in Q3 2024, showcasing robust demand at the luxury end of the market.

Shishir Baijal attributed the surge to “economic expansion, infrastructure advancements, and evolving consumer preferences,” noting the resilience of India’s market even amidst global economic challenges.

India’s housing market benefits from its third-highest homeownership rate in APAC at 87 per cent, trailing only Vietnam and Singapore. 

As the economy expands—projected to grow by 7.2 per cent in FY 2025—luxury real estate continues to attract investments. Key drivers include a 41 per cent YoY spike in premium housing sales during Q3 2024 and the country’s transition to advanced sectors like AI and blockchain.