India's Real Estate Market Surges: 7.7% Annual Growth Outpaces Major Economies
India's housing market continues to shine, with a 7.7% annual growth in residential prices, outpacing major economies like the US, UK, and Australia. The country ranks 15th in Knight Frank's Global House Price Index, driven by robust end-user demand and improving economic conditions.
Real EstateHousing MarketIndiaGlobal House Price IndexKnight FrankReal EstateAug 13, 2025
On a quarterly basis, prices climbed 2.9%, signalling steady buyer confidence despite global economic headwinds. The growth comes on the back of robust end-user demand, improving macroeconomic conditions, and early signs of borrowing cost moderation.
“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.
In Q1 2025, the weighted average annual price growth across our basket of 55 global housing markets picked up to 2.3%, up from 1.7% in Q4 2024, although the rate sits below the long-run trend rate of 5.1%.
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.
“Global house-price growth has rebounded modestly above its long-run trend on the back of early rate cuts, but real affordability remains stretched. We believe further policy easing this year will be needed to sustain growth at or above trend,” said Liam Bailey, Knight Frank’s Global Head of Research.
For Indian homebuyers, the data points to a resilient and appreciating asset class, especially in mid- to premium segments. For investors, the sustained momentum—despite global uncertainty—signals that India remains an attractive real estate market, offering both stability and growth potential.
Frequently Asked Questions
What is the Global House Price Index?
The Global House Price Index is a quarterly report by Knight Frank that tracks the performance of residential property markets across 55 countries. It provides insights into the trends and growth rates of house prices globally.
How much did India's residential prices grow annually in Q1 2025?
India's residential prices grew by 7.7% annually in Q1 2025, according to Knight Frank's Global House Price Index.
What factors are driving the growth in India's housing market?
The growth in India's housing market is driven by robust end-user demand, improving macroeconomic conditions, rising incomes, and early signs of borrowing cost moderation.
Which country led the rankings in the Global House Price Index Q1 2025?
Turkey led the rankings in the Global House Price Index Q1 2025 with a 32.2% surge in house prices.
What are the expected trends for India's housing market in 2025?
Knight Frank expects demand in India's housing market to remain healthy, particularly in mid- and premium housing segments, as interest rates stabilize further.
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