India’s housing prices rise 7.7% annually, ranks 15th globally in Q1

India's housing market has shown remarkable growth, ranking 15th globally with a 7.7% nominal price increase in Q1 2025. The country's residential market is benefiting from strong end-user demand, rising incomes, and renewed investor interest. This positive momentum is expected to continue throughout 2025, driven by economic expansion and stable interest rates. According to Knight Frank's Global House Price Index, Indian home prices increased by 2.9% quarterly, reflecting sustained buyer confidence. Globally, annual price growth across the 55 markets tracked by Knight Frank rose to 2.3% in Q1 2025, a modest rebound from the 1.7% recorded in Q4 2024. The report indicates that 87% of the markets saw positive annual growth, a significant improvement from previous years when higher borrowing costs had cooled demand. Turkey, North Macedonia, and Portugal were the top-ranking countries with double-digit annual growth. At the same time, Mainland China and Hong Kong SAR experienced the steepest declines.
CMD of Knight Frank India, Mr. Shishir Baijal, noted that the positive price momentum highlights the strength of India's housing sector, even amid global economic uncertainty. He anticipates that as interest rates stabilize further, demand will remain healthy, especially in the mid- and premium housing segments. Knight Frank's Global Head of Research, Mr. Liam Bailey, stated that while global house price growth has modestly rebounded, real affordability remains strained. He believes that further policy easing will be necessary this year to sustain growth. India's residential market resilience is expected to persist through 2025 due to strong domestic demand and economic growth.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.