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.
Related News Articles
Unlocking Golden Opportunities in Delhi's Real Estate Market
Golden Growth Fund launches ₹400 crore real estate fund, targeting brownfield projects in South Delhi and Lutyens' Delhi
Maldives Welcomes Investment in Tourism, Real Estate, and Infrastructure: President Muizzu
Maldives President Dr. Mohamed Muizzu has announced that his country is open to investments in key sectors such as tourism, real estate, and infrastructure. This strategic move aims to boost economic growth and enhance the nation's development.
FPCE Seeks Government Intervention for Realty-Specific Homebuyer Interest Rules
The Federation of Indian Real Estate Developers (FIRE) and the Confederation of Real Estate Developers' Associations of India (CEDAI) have jointly written to the government, urging for specific rules to protect homebuyers' interests in the real estate sec
Mixed Response to CIDCO Plot Auction in Navi Mumbai: Godrej Properties and Others Bid
The recent auction of plots by CIDCO in Navi Mumbai has seen a lukewarm response, with only 15 of the 47 plots receiving the necessary bids. Developers cite high base rates as a deterrent, but CIDCO remains optimistic about the market's potential.
2024 in Review: Luxury Homes as the New Status Symbol in Real Estate
Mumbai alone accounted for 84% of India's ultra-luxury property sales, with 21 units worth Rs 2,200 crore sold in 2024, according to Anarock data.
Housing Registrations See 4% Uptick in Top 8 Indian Cities in 2024
Housing registrations in major Indian cities, including Mumbai, Bengaluru, and Hyderabad, witnessed a 4% increase in 2024, totaling 5.77 lakh units, as reported by Square Yards.