Mumbai Sees 6.2% Rise In Prime Home Prices, Among Top 10 Globally In Luxury Housing Growth

Mumbai’s prime residential market continued to record strong price growth in the second quarter of 2026, with prices of luxury homes rising 6.2 per cent on a year-on-year basis, according to Knight Frank’s Prime Global Cities Index. The city featured among the leading global markets for annual prime growth, highlighting the demand for high-end housing. The latest index tracks prime residential markets across 47 cities worldwide. Globally, prime home prices have increased by 2.6 per cent in the 12 months to the second quarter of 2026, which is an increase from 2 per cent in the previous quarter but below the 3 per cent growth recorded a year earlier.

Mumbai’s 6.2 per cent annual growth was accompanied by a 1.7 per cent increase in prime prices during the second quarter itself. This has placed the city among the strong-performing luxury residential markets with major markets in Asia.

Tokyo recorded the highest annual growth rate in the index. Prime residential prices increased by 50.7 per cent in the year to Q2 2026. Tokyo was followed by Manila with 14.6 per cent growth, while Singapore recorded a 9.5 per cent increase. Seoul, Mumbai and Bengaluru also featured among these markets, with annual prices increasing by 6.4 per cent, 6.2 per cent and 4.5 per cent, respectively.

The performance indicates that the demand for premium homes remains resilient in various Asian cities. While the quarterly movement was varied across the markets, Mumbai recorded a positive momentum during the April-June quarter, with the prices increasing by 1.7 per cent.

Changes in The Luxury Residential Markets

According to the report, the prime housing market is being shaped not just by the traditional factors like location, architecture and views, but also by the growing preferences of buyers for branded residences, privacy, security, and highly serviced amenities. The growth of global wealth, migration of affluent individuals and sustained demand in major cities are influencing where luxury residences are emerging. Changing preferences around lifestyle, services, and experiences are also shaping how the high-end housing segment grows.

For Mumbai, the 6.2 per cent annual increase underscores the city’s continued presence among the world’s stronger-performing prime residential markets.