The purchasing power of $1 million in India’s prime residential market continues to shrink, reflecting sustained price appreciation across key cities. According to Knight Frank’s Wealth Report 2026, $1 million can now buy 96 square metres (sq m) in Mumbai, 205 sq m in Delhi, and 357 sq m in Bengaluru, underscoring both rising demand and deepening wealth-driven real estate activity.

The data, part of Knight Frank’s Prime International Residential Index (PIRI 100), highlights how India’s luxury housing markets are becoming increasingly expensive, even as they remain more affordable than global peers such as Monaco, Hong Kong, and Geneva.

India’s prime markets

On a year-on-year basis, the space purchasable for $1 million has declined across all three major Indian cities. In Mumbai, buyers could purchase 99 sq m in 2024, compared to 96 sq m in 2025, marking a 3% drop. Delhi saw a marginal decline from 208 sq m to 205 sq m, while Bengaluru recorded the sharpest fall—from 370 sq m to 357 sq m, a decline of nearly 3.5%.

This compression in purchasable area comes despite a weakening rupee, which depreciated by around 5.4% against the US dollar. Typically, a weaker currency would improve purchasing power for dollar-denominated buyers. However, in this case, strong domestic price appreciation offset the currency advantage.

Prime residential prices rose sharply across Indian cities — Mumbai saw an 8.7% increase, Delhi 6.9%, and Bengaluru led with a 9.4% jump. As a result, property price inflation outpaced currency movements, reducing the effective space that $1 million can buy.

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Bengaluru leads global rankings surge

Bengaluru emerged as one of the standout performers globally, climbing 32 positions on the PIRI rankings—from 40th in 2024 to 8th in 2025 among the fastest-growing prime residential markets. The city’s strong performance is attributed to robust demand driven by its expanding tech ecosystem and rising concentration of high-net-worth individuals (HNWIs).

Mumbai also recorded a notable improvement, moving up from 21st to 10th position, supported by strong demand in the premium and super-prime segments. The city witnessed a surge in transactions involving homes priced above $2 million, indicating sustained appetite among ultra-wealthy buyers.

Delhi, while more stable, also improved its position marginally, moving from 18th to 17th, backed by steady price growth and demand in select luxury micro-markets.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said India’s improving rankings reflect the strength of its luxury housing segment, supported by economic growth and rising wealth levels. “The number of HNWIs and UHNWIs continues to grow, driving sustained demand for prime residential assets,” he noted.

Monaco remains most expensive

Globally, Monaco retained its position as the most expensive prime residential market, where $1 million buys just 16 sq m. Hong Kong (23 sq m) and Geneva (28 sq m) follow, highlighting the stark contrast with Indian cities.

Other global cities such as London (33 sq m), New York (34 sq m), and Singapore (28 sq m) also remain significantly more expensive than Indian metros, though the gap is gradually narrowing as Indian luxury markets gain momentum.

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Diverging global trends in luxury housing

Knight Frank’s report noted that 73 out of 100 global markets recorded price growth in 2025, while 24 saw declines, indicating an uneven recovery across regions. On average, prime residential prices rose 3.2% globally, outperforming mainstream housing markets for the second consecutive year.

Regionally, the Middle East led growth with a 9.4% increase, largely driven by Dubai’s sharp 25.1% surge. Asia-Pacific markets recorded a 3.6% rise, while Europe saw a 3.3% increase. North America was the only region to witness a decline, falling 0.9% amid continued weakness in parts of Canada.

Liam Bailey, Global Head of Research at Knight Frank, added that luxury housing markets globally are increasingly influenced by wealth creation rather than broader economic cycles. “Prime property has pulled away from mainstream housing in many markets, supported by strong capital flows and evolving lifestyle preferences,” he said.

Luxury market gains depth

The steady decline in purchasable area for $1 million signals a maturing luxury real estate market in India. While still relatively affordable compared to global hubs, Indian cities are witnessing rapid price discovery driven by domestic wealth and global investor interest.

As high-net-worth individuals diversify across geographies and asset classes, India’s prime residential sector appears well-positioned for sustained long-term growth, even as affordability in top-tier locations continues to tighten.

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