India Emerges as Promising Global Real Estate Destination in 2025

India's housing market has been a top performer among global real estate markets as residential prices grew 7.7 percent annually in nominal terms and 4.2 percent in real terms during Q1 2025, as per Knight Frank's Global House Price Index.

India ranked 15th out of 55 markets globally, ahead of influential economies such as the US, UK, and Australia.

Every quarter, Indian prices increased 2.9 percent, showing consistent buyer optimism in the face of economic adversity elsewhere in the world. 

Key highlights:

• India ranks 15th globally in Q1 2025 with 7.7 percent annual housing price growth
• Quarterly prices up 2.9 percent, reflecting steady buyer confidence despite global headwinds
• Strong end-user demand, rising incomes, and stabilizing rates fuel momentum in mid- and premium housing segments

"India's residential sector continues to be supported by robust end-user demand, growing incomes, and renewed investment appetite. With interest rates continuing to stabilize, we foresee demand staying healthy, especially for mid- and premium housing segments," said Shishir Baijal, Chairman & Managing Director, Knight Frank India.

The growth was attributed to strong end-user demand, bettering macroeconomic conditions, and initial indications of moderation in borrowing costs. For investors, the continued momentum places India as a promising real estate destination that both provides stability and prospects for growth.

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Annually, 87 percent of the 55 monitored markets reported growth, with Turkey leading at 32.2 percent, trailed by North Macedonia (22.6 percent) and Portugal (16.9 percent). Mainland China and Hong Kong SAR had the sharpest drops.

Global average house price appreciation was 2.3 percent, higher than the 1.7 percent in Q4 2024, thanks to initial policy rate reductions in various markets. Nonetheless, Knight Frank warned that high affordability issues persist and further stimulus measures might be necessary to maintain the pace during 2025.