Bengaluru's Luxury Housing Market Sees Decline in Space Purchase Amid Price Surge
$1 million buys less Bengaluru luxury space as prices surge; city jumps to 8th globally: Knight Frank
The Economic Times
Image: The Economic Times
Bengaluru's luxury home prices have surged, reducing the purchasing power of $1 million to buy 4% less residential space compared to last year. The city has climbed to 8th place globally for price growth, driven by a 9.4% increase in luxury residential prices, despite currency depreciation.
- 01$1 million now buys 357 sq m of prime residential space in Bengaluru, down from 370 sq m last year.
- 02Bengaluru's luxury residential prices rose by 9.4%, tightening market affordability.
- 03Bengaluru ranks 8th in Knight Frank's Prime International Residential Index, climbing 32 places.
- 04India's ultra-high net-worth individuals (UHNWI) population is projected to grow significantly, boosting luxury demand.
- 05Monaco remains the most expensive market globally, with $1 million purchasing only 16 sq m.
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Bengaluru, India, is experiencing a significant surge in luxury home prices, which has resulted in a decrease in purchasing power for buyers. According to Knight Frank's latest Wealth Report, $1 million now buys 357 sq m of prime residential space, down from 370 sq m last year, marking a 3.5% year-on-year decline. This reduction is attributed to a 9.4% increase in luxury residential prices, which has offset the benefits of a 4.3% depreciation in the Indian rupee. As a result, Bengaluru has climbed to 8th place in Knight Frank's Prime International Residential Index, reflecting its rapid growth in the global luxury market. Other Indian cities, such as Mumbai and Delhi, also saw increases in prime residential prices, with Mumbai moving to 10th place and Delhi to 17th. The report highlights a growing ultra-wealthy population in India, with a 63% increase in individuals worth over $30 million anticipated by 2026, further driving demand in the luxury housing sector.
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The surge in luxury home prices is making it increasingly difficult for potential buyers to afford prime residential properties in Bengaluru, impacting homebuyers and investors in the luxury market.
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