Real Estate Mumbai
India's Property Prices Surge 9.6% YoY: Knight Frank's Global Residential Market Report
2026-02-03 · Geosquare
India has secured a prominent position among the top ten global residential markets, with property prices rising 9.6% year-on-year (YoY), significantly above the global average. This growth is driven by strong domestic demand, improved affordability, and a stable macroeconomic environment, as per the report released by real estate services firm Knight Frank on Tuesday.
The report noted that residential sales across the top eight cities remained steady in 2025, exceeding 3.48 lakh units. The second half of 2025 recorded the highest sales volumes since 2013. Market health indicators remained balanced, with the quarters-to-sell ratio holding at 5.8 quarters, despite a rise in unsold inventory driven largely by higher-value project launches.
Price growth was broad-based, with the National Capital Region (NCR) leading the pack at 19%, followed by Hyderabad at 13%, Bengaluru at 12%, and Mumbai at 7%. The gains were largely driven by premium and mid-to-premium housing, supported by cumulative interest rate cuts, benign inflation, and rising household incomes.
The report also highlighted a structural shift towards higher-value homes. Properties costing more than Rs 1 crore represented approximately 50% of the complete residential market sales. Developers have reduced their project launches to focus on completing existing work and are using financial incentives to sustain sales rather than decreasing prices.
India's housing market continues to stand apart in a global environment that remains uneven. According to Shishir Baijal, International Partner, Chairman, and Managing Director of Knight Frank India, the combination of strong economic growth, easing financial conditions, and a decisive shift towards end-user-led demand has created a more mature and resilient residential cycle. “As we move into 2026, we expect the market to be defined by stable absorption, selective price appreciation, and disciplined supply, rather than speculative excess,” Baijal added.
Globally, price growth was gradually picking up in housing markets, assisted by easing monetary conditions that started to feed through to demand. The report provides a comprehensive overview of the factors contributing to the robust performance of India's residential market and its position among the top global markets.