India’s housing market has demonstrated strong resilience and growth in the first quarter of 2025, securing the 15th position globally with an annual nominal price increase of 7.7%, according to the latest Knight Frank Global House Price Index. This growth comes despite persistent global economic uncertainties, highlighting the sector’s robustness and the confidence of both end-users and investors.

The report reveals that Indian home prices rose by 2.9% on a quarterly basis, indicating sustained buyer interest and positive market momentum. This upward trend has been largely attributed to a combination of rising household incomes, a stable interest rate environment, and renewed investor activity, particularly in mid-range and premium housing segments.

Globally, the index tracked 55 housing markets, where annual price growth increased to 2.3% in Q1 2025 — a rebound from 1.7% in Q4 2024. The proportion of markets witnessing positive annual growth rose significantly, with 87% of them posting gains, marking a stark contrast to previous years when high borrowing costs dampened demand.

Among the top global performers, Turkey, North Macedonia, and Portugal led with double-digit price increases, driven by unique regional dynamics, currency fluctuations, and strong local demand. On the other hand, Mainland China and Hong Kong SAR saw the steepest declines, reflecting a cooling real estate sector in those regions.

In India, Knight Frank India’s CMD, Mr. Shishir Baijal, emphasized that the continued positive momentum is a sign of the sector’s underlying strength, especially amid a global environment marked by economic and geopolitical uncertainties. He believes that stabilizing interest rates will further support buyer confidence and transaction activity, ensuring sustained demand throughout the year.

Knight Frank’s Global Head of Research, Mr. Liam Bailey, also highlighted that while global house price growth has begun to recover modestly, the issue of affordability remains a concern in many regions. He anticipates that policy easing — such as adjustments in lending rates and supportive housing policies — will be crucial for maintaining growth momentum in 2025.

Looking ahead, India’s residential property market is expected to maintain its resilience, with urban demand, economic expansion, and infrastructure development playing key roles. The mid and premium segments are likely to see the most activity, driven by aspirational buyers and investment-led demand.

The Knight Frank report reinforces the narrative that India’s housing market is not only weathering global economic pressures but also positioning itself as one of the more promising real estate destinations globally in 2025.

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