Delhi ranks 6th globally for luxury home price growth, 6.7% rise in Q4

Average annual prices rose 3.2% across the 44 residential markets

New Delhi has emerged as a top contender in the global luxury real estate market, securing the 6th position among 44 cities worldwide for the highest price appreciation of luxury homes, according to the latest Prime Global Cities Index Q4 2024 by real estate consultant Knight Frank. The capital city saw a 6.7% increase in luxury home prices during the December 2024 quarter, reflecting a growing demand for high-end properties in India’s capital.

 

The Prime Global Cities Index, a valuation-based tracking system for prime residential prices, evaluates price changes in luxury properties across 44 cities globally. Seoul topped the list with a remarkable 18.4% surge, followed by Manila (17.9%), Dubai (16.9%), Tokyo (12.7%), and Nairobi (8.3%). New Delhi’s rise marks it as a key player in the global luxury market.

 

 

The latest data from Knight Frank reveals that 34 out of 44 cities reported a positive change in prime residential prices for the 12-month period ending December 2024. Globally, the overall Prime Global Residential Index rose by 3.2%, reflecting the resilience of luxury real estate despite global economic uncertainties.

 

“New Delhi’s strong growth in luxury home prices mirrors the broader trend seen across India, where demand for high-end residential properties has been surging,” said Shishir Baijal, Chairman and Managing Director of Knight Frank India. “The demand is being driven by a growing preference for lifestyle upgrades, supported by India’s stable economic outlook and a buoyant market sentiment. As we move forward, we expect this segment to continue its upward trajectory.”

 

India’s Luxury Home Market on the Rise

New Delhi’s rise in the rankings is a part of the broader trend of India’s luxury housing market expanding rapidly. Alongside the capital, other Indian cities like Mumbai (ranked 7th with a 6.1% increase) and Bengaluru (ranked 13th with a 4.1% increase) have also experienced notable price hikes in their luxury segments, further solidifying India’s position as an emerging powerhouse in the global real estate market.

 

The rise in demand for luxury homes in New Delhi can be attributed to several factors, including increased affluence, a growing number of high-net-worth individuals, and the capital's appeal as a business and political hub. Additionally, the Indian luxury market is benefiting from economic stability and a positive outlook, encouraging affluent buyers to seek out lifestyle upgrades in the form of more spacious, sophisticated homes.

 

Globally, the luxury home market remains strong, despite ongoing challenges such as inflationary pressures and the complexities of economic policy. According to Liam Bailey, Knight Frank’s Global Head of Research, “While inflation remains stubborn in many developed economies, the expectation is that interest rates will likely continue to fall in 2025, unlocking further growth in house prices. As economic conditions evolve, demand for luxury properties is expected to stay robust, with key cities like New Delhi continuing to see price increases.” 

A Snapshot of Global Rankings:

• Seoul – 18.4% increase (Rank 1)
• Manila – 17.9% increase (Rank 2)
• Dubai – 16.9% increase (Rank 3)
• Tokyo – 12.7% increase (Rank 4)
• Nairobi – 8.3% increase (Rank 5)
• New Delhi – 6.7% increase (Rank 6)
• Mumbai – 6.1% increase (Rank 7)
• Madrid – 5.5% increase (Rank 8)
• Perth – 5.3% increase (Rank 9)
• Lisbon – 5.3% increase (Rank 10)