India's Housing Prices Surge 7.7% Annually, Ranks 15th Globally in Q1 2025
India's housing market has seen a 7.7% annual price increase, ranking 15th globally in Q1 2025. This growth is driven by strong domestic demand, rising incomes, and renewed investor interest.
Housing MarketReal EstateEconomic GrowthHome PricesKnight FrankReal Estate NewsAug 14, 2025
According to Knight Frank's Global House Price Index, Indian home prices increased by 2.9% quarterly, reflecting sustained buyer confidence. Globally, annual price growth across the 55 markets tracked by Knight Frank rose to 2.3% in Q1 2025, a modest rebound from the 1.7% recorded in Q4 2024. The report indicates that 87% of the markets saw positive annual growth, a significant improvement from previous years when higher borrowing costs had cooled demand. Turkey, North Macedonia, and Portugal were the top-ranking countries with double-digit annual growth. At the same time, Mainland China and Hong Kong SAR experienced the steepest declines.
CMD of Knight Frank India, Mr. Shishir Baijal, noted that the positive price momentum highlights the strength of India's housing sector, even amid global economic uncertainty. He anticipates that as interest rates stabilize further, demand will remain healthy, especially in the mid- and premium housing segments. Knight Frank's Global Head of Research, Mr. Liam Bailey, stated that while global house price growth has modestly rebounded, real affordability remains strained. He believes that further policy easing will be necessary this year to sustain growth.
India's residential market resilience is expected to persist through 2025 due to strong domestic demand and economic growth. The housing sector is a crucial driver of the Indian economy, providing employment opportunities and contributing significantly to the nation's GDP. The government's initiatives to promote affordable housing and ease regulatory norms have also played a pivotal role in boosting the market's performance.
In conclusion, the robust growth in India's housing market is a positive indicator of the country's economic health and stability. As the sector continues to attract both domestic and international investors, the outlook for 2025 remains optimistic. However, maintaining this momentum will require concerted efforts to address affordability and regulatory challenges.
Frequently Asked Questions
What is the current global ranking of India's housing market in Q1 2025?
India's housing market ranked 15th globally in Q1 2025 with a 7.7% annual price increase.
What factors are driving the growth in India's housing market?
The growth in India's housing market is driven by strong end-user demand, rising incomes, and renewed investor interest.
How has the global house price growth trended in Q1 2025 compared to previous quarters?
Globally, annual price growth across the 55 markets tracked by Knight Frank rose to 2.3% in Q1 2025, a modest rebound from the 1.7% recorded in Q4 2024.
What are the top-ranking countries in terms of annual house price growth?
Turkey, North Macedonia, and Portugal were the top-ranking countries with double-digit annual growth.
What factors are expected to sustain the growth in India's housing market through 2025?
The growth in India's housing market is expected to be sustained through 2025 due to strong domestic demand, economic growth, and stable interest rates.
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