August 14, 2025
NEW DELHI – India’s housing market is proving to be a bright spot in the global real estate landscape with the residential prices rising 7.7% in nominal terms and 4.2% in real terms year-on-year. It outpaced major economies such as the US, UK, and Australia.
The Knight Frank’s latest Global House Price Index for the Q1 of 2025 ranked India 15th out of 55 markets globally.
As per the report, on a quarterly basis, prices climbed 2.9%, signalling steady buyer confidence despite global economic headwinds.
“India’s residential market continues to benefit from strong end-user demand, rising incomes, and renewed investor interest. As interest rates stabilize further, we expect demand to remain healthy, particularly in mid- and premium housing segments,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India.
The report suggested that the growth comes on the back of robust end-user demand, improving macroeconomic conditions, and early signs of borrowing cost moderation.
For investors, the sustained momentum signals that India remains an attractive real estate market, offering both stability and growth potential.
Across the 55 tracked markets, 87% saw positive annual growth.
Turkey led the rankings with a 32.2% surge, followed by North Macedonia (22.6%) and Portugal (16.9%). At the other end, Mainland China and Hong Kong SAR saw the steepest price drops.
The index showed global house price growth averaging 2.3%, up from 1.7% in Q4 2024, driven largely by early policy rate cuts. However, Knight Frank warns that affordability pressures remain elevated, and further easing measures may be necessary to sustain momentum through 2025.