Knight Frank Report Indicates Shrinking Purchasing Power in Mumbai''s Luxury Housing Market Amid Strong Price Growth and Rising Ultra-Wealthy Population

Apr 24, 2026, 09:30

Introduction

The 2026 edition of Knight Frank''s Wealth Report shows that Mumbai remains India''s most expensive luxury housing market. A budget of ₹10 crore now buys less space than last year. The report also highlights different trends in other Indian cities and provides data on the growth of the country''s ultra-wealthy population.

Main Body

According to the Knight Frank Wealth Report 2026, a sum of ₹10 crore in 2025 bought 1,033 square feet of luxury property in Mumbai, a 3% decrease from 1,066 square feet in 2024. In Delhi, the same amount bought 2,207 square feet, down from 2,239 square feet. Bengaluru recorded the largest annual drop, with purchasable area falling from 3,983 to 3,843 square feet. In Hyderabad, the area purchasable for ₹10 crore decreased from 5,414 to 5,360 square feet. The report also examined purchasing power in US dollars. In the fourth quarter of 2025, $1 million (about ₹9.4 crore) bought 96 square metres (1,033 square feet) in Mumbai, down from 106 square metres (1,141 square feet) in the fourth quarter of 2020—a decline of 9%. The report attributed this reduction to limited land availability, coastal restrictions, and strong global investor demand. In contrast, Delhi and Bengaluru saw slight improvements in dollar purchasing power over the same period: Delhi increased from 202 to 205 square metres, and Bengaluru from 351 to 357 square metres. Furthermore, prime residential prices in India''s major cities rose faster than the rupee''s depreciation. The report noted that the rupee weakened by about 5.4% against the US dollar, but prime property prices per square foot increased by 8.7% in Mumbai, 6.9% in Delhi, and 9.4% in Bengaluru. As a result, the net square metres purchasable for $1 million fell because price growth outpaced the currency advantage. Bengaluru''s 9.4% year-on-year price rise placed it among the fastest-growing luxury housing markets globally; its ranking in the Prime International Residential Index (PIRI 100) improved from 40th in 2024 to 8th in 2025. Mumbai moved from 21st to 10th, and Delhi from 18th to 17th. Globally, the PIRI 100 recorded an average annual price increase of 3.2% in 2025, outperforming mainstream housing markets for the second year in a row. Tokyo led with a 58.5% surge, while Guangzhou experienced a 12.2% decline. The Middle East region posted the highest average growth at 9.4%, driven largely by Dubai''s 25.1% rise. Latin America and the Caribbean saw 4.7% growth, followed by Asia-Pacific (3.6%) and Europe (3.3%). North America was the only region with a decline, averaging 0.9%. The report also provided data on India''s ultra-wealthy population. Between 2020 and 2025, the number of individuals with investable assets over $30 million (excluding primary homes and collectibles) grew by 63%, from just over 12,000 to 19,877. This makes India the sixth-largest market for ultra-wealthy individuals globally. Knight Frank''s Wealth Sizing Model projects a further 27% increase, reaching 25,217 by 2031. Mumbai accounts for 35.4% of the country''s ultra-wealthy population. Delhi and Chennai each increased their share by 3% over the past decade, while Hyderabad''s share rose by 1.3% since 2015. Shishir Baijal, international partner, chairman and managing director of Knight Frank India, stated that India''s rise in the PIRI highlights the growing strength of the luxury housing market, with Bengaluru, Mumbai, and Delhi gaining prominence due to rising wealth and strong demand. He noted that the continuous growth of India''s economy has been important for this demand, as the number of high-net-worth and ultra-high-net-worth individuals steadily rises. Regarding Mumbai specifically, Baijal described the city as India''s financial hub, where proximity to business, lifestyle amenities, and premium real estate creates a strong value proposition, reflecting a deeper structural change in the country''s wealth creation cycle.

Conclusion

The Knight Frank Wealth Report 2026 confirms that Mumbai''s luxury housing market continues to experience price increases and reduced purchasing power, while Delhi and Bengaluru show more modest changes. India''s ultra-wealthy population has expanded significantly, and projections indicate further growth, positioning the country as an important market in the global luxury real estate landscape.

Vocabulary Learning

depreciation
A reduction in the value of a currency relative to other currencies.貶值：一種貨幣相對於其他貨幣的價值下降。
Example:The rupee weakened by about 5.4% against the US dollar, but prime property prices increased.
outpaced
To be faster or greater than something else; to exceed.超過：比某事物更快或更大；超越。
Example:Price growth outpaced the currency advantage, reducing the net square metres purchasable for $1 million.
prime residential
Top-tier, high-end residential properties in the most desirable locations.優質住宅：位於最理想地段的高端住宅物業。
Example:Prime residential prices in India's major cities rose faster than the rupee's depreciation.
purchasing power
The amount of goods or services that can be bought with a unit of currency.購買力：用一單位貨幣能購買的商品或服務的數量。
Example:The report indicates shrinking purchasing power in Mumbai's luxury housing market.
ultra-wealthy
Individuals with investable assets over a very high threshold, typically $30 million or more.超高淨值人士：擁有超過三千萬美元可投資資產的個人。
Example:India's ultra-wealthy population grew by 63% between 2020 and 2025.

Sentence Learning

The Middle East region posted the highest average growth at 9.4%, driven largely by Dubai's 25.1% rise.
This sentence uses the passive participle 'driven by' to indicate the cause of the growth. It helps organize the idea by clearly linking the result (highest growth) to its cause (Dubai's rise).此句使用被動分詞 'driven by' 來表示增長的原因。它有助於組織思路，清楚地把結果（最高增長）與其原因（杜拜的增長）聯繫起來。
Tokyo led with a 58.5% surge, while Guangzhou experienced a 12.2% decline.
The word 'while' contrasts two different trends in two cities. It helps organize the idea by showing a direct comparison between Tokyo's increase and Guangzhou's decrease.詞語 'while' 對比兩個城市的不同趨勢。它有助於組織思路，直接比較東京的增長和廣州的下降。
Regarding Mumbai specifically, Baijal described the city as India's financial hub, where proximity to business, lifestyle amenities, and premium real estate creates a strong value proposition, reflecting a deeper structural change in the country's wealth creation cycle.
The relative clause starting with 'where' describes the city as a financial hub and explains the reasons behind its strong value proposition. It helps organize the idea by adding detailed context about Mumbai's advantages.以 'where' 開頭的關係從句描述該城市為金融中心，並解釋其強大價值主張背後的原因。它有助於組織思路，提供關於孟買優勢的詳細背景。
He noted that the continuous growth of India's economy has been important for this demand, as the number of high-net-worth and ultra-high-net-worth individuals steadily rises.
The word 'as' introduces the reason for the importance of economic growth. It helps organize the idea by connecting the statement about the economy to the rising number of wealthy individuals.詞語 'as' 引出經濟增長重要性的原因。它有助於組織思路，將關於經濟的陳述與富裕人士數量上升聯繫起來。
As a result, the net square metres purchasable for $1 million fell because price growth outpaced the currency advantage.
The phrase 'as a result' signals the consequence, and 'because' gives the reason. Together, they organize the idea by clearly showing the cause-effect relationship between price growth and reduced purchasing power.短語 'as a result' 表示結果，而 'because' 給出原因。兩者共同組織思路，清楚展示價格增長與購買力下降之間的因果關係。