Home prices surge 7.7% annually: India beats US, UK, Australia, ranks 15th

Knight Frank's latest Global House Price Index (Q1 2025) has placed India among the top-performing residential markets worldwide, with annual house price growth of 7.7% in nominal terms

India’s housing market is proving to be a bright spot in the global real estate landscape, with Knight Frank’s latest Global House Price Index (Q1 2025) ranking the country 15th out of 55 markets worldwide. Residential prices rose 7.7% in nominal terms and 4.2% in real terms year-on-year, outpacing major economies such as the US, UK, and Australia.

 

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.  Knight Frank Global House Price Index 

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%.

 

Global Context

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.