The global luxury real estate market experienced significant growth in 2024, driven by strong demand and high returns on investment. Knight Frank’s Wealth Report 2025 revealed that the Prime International Residential Index (PIRI 100) rose by 3.6% over the past year, with 80 out of 100 luxury residential markets recording stable or positive price growth. Seoul led the rankings with an 18.4% YoY price increase, followed by Manila, Dubai, Riyadh, and Tokyo. The strongest growth was recorded in the Middle East (7.2%) and Latin America (6.3%), while Europe (2.5%) and North America (2.4%) lagged due to high interest rates and economic challenges.
Indian cities saw notable movements in the rankings. Delhi climbed to 18th place with a 6.7% YoY luxury price rise, while Bengaluru jumped to 40th from 59th place in 2023. Mumbai, however, slipped to 21st, falling 13 spots from last year. According to Knight Frank India’s Chairman & MD, Shishir Baijal, Delhi and Bengaluru’s ranking improvements reflect infrastructure expansion, economic growth, and rising demand for luxury properties.
The report also highlighted affordability trends for prime real estate. Monaco remained the most expensive city, offering just 19 sq m for $1 million, whereas Mumbai provided 99 sq m, Delhi 208 sq m, and Bengaluru 370 sq m. Despite an overall decline in affordability in Mumbai, Delhi and Bengaluru became more attractive to global investors, with property prices declining 11% and 9%, respectively, over the last decade.
High interest rates remain a key challenge for global luxury real estate markets. While central banks have started cutting rates, experts believe further reductions in 2025 will be necessary to sustain growth momentum. Indian cities are increasingly emerging as competitive destinations for luxury real estate investors worldwide.
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