According to Knight Frank’s latest ‘Prime Global Cities Index’ report, Mumbai’s luxury and prime residential property prices are expected to grow by 6.2% year-on-year in the second quarter (Q2) of 2026. With this spectacular surge, Mumbai has risen to the eighth position among 46 major real estate markets and established its top position among global cities worldwide. According to the report, Mumbai also saw a 1.7 percent quarter-on-quarter price increase, reflecting growing demand for Indian premium housing and unwavering investor confidence in the global real estate sector.

Globally, the average price growth of prime housing property has been just 2.6 percent, compared to Mumbai’s growth rate of more than double. Among other major cities in India, Bengaluru was ranked 12th with 4.5 percent annual price growth, while New Delhi was ranked 17th with 3.9 percent growth. Analysts believe that strong purchasing power of high net worth individuals, limited supply in prime locations and continuous expansion of infrastructure have fueled the boom in the luxury real estate market in Indian metros.

Where did the rest of the world’s cities rank?

Mumbai ranks eighth among 46 global cities with prime residential property prices up 6.2 percent year-on-year in the June quarter. In the quarter under review, global prime residential property prices rose at an annual average of 2.6 percent. Residential property prices rose year-on-year in 32 out of 46 cities. According to Knight Frank India, Bengaluru is ranked 12th with an annual growth of 4.5 percent and New Delhi is ranked 17th with an annual growth of 3.9 percent.

According to the data, Tokyo ranks first with annual value growth of 50.7 percent. This is followed by Manila (14.6 percent), Dubai (10.9 percent), Singapore (9.5 percent) and Nairobi (8.5 percent) respectively. Christchurch ranked sixth with 6.9 percent growth and Seoul ranked seventh with 6.4 percent growth. Vienna ranked ninth with 5.9 percent growth and San Francisco ranked 10th with five percent growth.

The Mumbai market continues to strengthen

Shishir Baijal, chairman and managing director of Knight Frank India, said Mumbai’s inclusion in the top 10 major residential markets is significant amid relatively slow growth in residential property prices globally. He said the 6.2 percent annual growth in the city reflects strong demand in the prime residential market. The location, quality and diverse residential offering underpins the property’s value in this market.

Baijal said that for investors and buyers, this shows that Mumbai’s prime residential property market is strongly linked to long-term wealth creation and limited supply. Liam Bailey, Knight Frank’s global head of research, said the latest data showed a slight improvement in the global luxury housing market. He said domestic supply, currency fluctuations, wealth creation and interest rates will continue to affect various markets.