India’s capital city, New Delhi, has emerged as a top contender in the global luxury real estate market. According to the latest Prime Global Cities Index Q4 2024 by real estate consultant Knight Frank, New Delhi secured the 6th position among 44 cities worldwide for the highest price appreciation of luxury homes.

New Delhi saw a 6.7 per cent increase in luxury home prices during the December 2024 quarter, reflecting a growing demand for high-end properties in India’s capital, the report said.

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Shishir Baijal, Chairman and Managing Director of Knight Frank India said, “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.”

“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.”

The report said that 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 lifestyle upgrades in the form of more spacious, sophisticated homes.

Alongside New Delhi, other Indian cities like Mumbai (ranked 7th with a 6.1 per cent increase) and Bengaluru (ranked 13th with a 4.1 per cent 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.

Globally, the luxury home market remains strong, despite ongoing challenges such as inflationary pressures and the complexities of economic policy.

Seoul topped the list with a remarkable 18.4 per cent surge, followed by Manila (17.9 per cent), Dubai (16.9 per cent), Tokyo (12.7 per cent), and Nairobi (8.3 per cent). New Delhi’s rise marks it as a key player in the global luxury market.