India’s housing sector continued its upward trajectory in early 2025, posting a 7.7% annual increase in home prices and securing the 15th spot in the global rankings for Q1, according to Knight Frank’s Global House Price Index. The growth reflects a robust combination of steady end-user demand, increasing household incomes, and renewed interest from both domestic and foreign investors.
On a quarterly basis, residential prices in India rose 2.9%, signaling persistent buyer confidence and a healthy real estate climate. This momentum is expected to extend through the remainder of 2025, fueled by continued economic expansion and stable interest rates.
Globally, housing markets showed modest recovery, with annual price growth averaging 2.3% across the 55 tracked countries — up from 1.7% in Q4 2024. Notably, 87% of these markets recorded positive year-on-year growth, marking a significant turnaround from previous years when higher borrowing costs had dampened activity. Turkey, North Macedonia, and Portugal topped the list with double-digit annual gains, while Mainland China and Hong Kong SAR faced the largest declines.
Knight Frank India’s Chairman and Managing Director, Shishir Baijal, highlighted that India’s resilience in the housing sector reflects underlying market strength despite global uncertainties. He noted that stable interest rates are likely to further support healthy demand, particularly in mid-range and premium housing segments.
Echoing this, Knight Frank’s Global Head of Research, Liam Bailey, observed that while global housing price growth is rebounding, affordability challenges persist. He suggested that further policy easing may be necessary in 2025 to sustain the pace of growth worldwide.
Analysts believe that India’s real estate market will remain resilient throughout the year, supported by a strong domestic economy, steady urban demand, and a favorable lending environment. The country’s ability to maintain price momentum while navigating global headwinds positions it as one of the more stable housing markets on the international stage.
