Indian residential property prices rose 7.7% in nominal terms and 4.2% after adjusting for inflation over the 12 months to March 2025, according to Knight Frank’s Global House Price Index. The performance places India 15th among 55 tracked markets worldwide, well ahead of the global average of 2.3% nominal growth.
Global Context – India Punches Above Its Weight
While many global housing markets struggled to sustain momentum in the face of high inflation and elevated interest rates, India’s property sector continued its steady climb. Major economies such as the United States (3.4%), United Kingdom (3.9%), and Australia (4.5%) posted slower growth, highlighting India’s relative resilience.
Top Global Performers vs. India
| Rank | Country/Region | Nominal Growth (%) | Real Growth (%) |
|---|---|---|---|
| 1 | Turkey | 32.2 | -4.2 |
| 2 | North Macedonia | 22.6 | 24.2 |
| 3 | Portugal | 16.9 | 14.8 |
| … | … | … | … |
| 13 | Mexico | 8.2 | 4.2 |
| 14 | Brazil | 8.1 | 2.5 |
| 15 | India | 7.7 | 4.2 |
| 16 | Ireland | 7.6 | 5.5 |
| 17 | Iceland | 7.0 | 3.1 |
Why India is Growing Faster
- Infrastructure Expansion – Metro projects, expressways, and airport upgrades in major cities.
- Economic Growth – Strong GDP performance and urban job creation, particularly in IT and services.
- Resilient Demand – Post-pandemic preference for homeownership remains intact.
- Interest Rate Stability – The Reserve Bank of India’s relatively moderate rate cycle has kept affordability less strained compared to other markets.
Global Laggards
Several major economies saw prices drop sharply:
- Mainland China: -7.5%
- Hong Kong SAR: -6.5%
- Finland: -6.0%
These declines contrast sharply with India’s upward trajectory, underscoring its position as a bright spot in the Asian property landscape.
Expert View
Liam Bailey, Global Head of Research at Knight Frank, said:
“India’s performance reflects strong domestic demand supported by infrastructure investment and a growing middle class. It is well placed to outperform the global average again in 2025–26.”
Outlook
Knight Frank expects 6–8% nominal price growth in India for 2025–26, with metro-linked suburbs and planned urban townships likely to see above-average gains. However, affordability pressures in mid-income housing could temper momentum if interest rates rise again.
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