India’s residential real estate market continues to stand tall amid a mixed global recovery, recording a robust 9.6% year-on-year nominal price growth in Q3 2025 — ranking 10th worldwide and emerging as the only APAC market in the top 10, according to Knight Frank’s Global House Price Index Q3 2025 and India Real Estate: Office and Residential Market – H2 2025 report.
While global house prices grew modestly by 2.4% annually in Q3 2025 — aided by decisive monetary easing from central banks — India’s performance underscores deep-rooted end-user demand, improving affordability, and a stable macroeconomic backdrop.
Turkey topped the global charts with a staggering 32.2% nominal price surge, followed by North Macedonia (25.1%) and Portugal (17.7%). However, in real (inflation-adjusted) terms, many high-growth markets saw gains eroded — with Turkey posting negative real growth (-0.8%).
India’s Top 10 Global Ranking – Q3 2025
| Rank | Market | 12-month % Change (Nominal) | 3-month % Change (Nominal) | 12-month % Change (Real) |
|---|---|---|---|---|
| 1 | Turkey | 32.2% | 5.2% | -0.8% |
| 2 | North Macedonia | 25.1% | 4.0% | 23.4% |
| 3 | Portugal | 17.7% | 4.4% | 14.9% |
| 4 | Bulgaria | 15.4% | 3.8% | 9.3% |
| 5 | Hungary | 15.1% | 1.1% | 10.1% |
| 6 | Croatia | 13.8% | 2.9% | 9.2% |
| 7 | Spain | 12.1% | 2.9% | 8.8% |
| 8 | Slovakia | 11.7% | 1.3% | 7.0% |
| 9 | Czech Republic | 9.9% | 2.5% | 7.4% |
| 10 | India | 9.6% | 1.5% | 8.0% |
Source: Knight Frank Research
Strong Sales Momentum & City-Level Price Surge
Residential sales across India’s top eight cities remained steady in 2025 at over 348,000 units, with H2 2025 volumes hitting the highest level since 2013. The quarters-to-sell ratio stayed balanced at 5.8 quarters, even as unsold inventory rose — largely due to higher-value project launches.
Price appreciation was widespread and led by:
- National Capital Region (NCR): +19% YoY
- Hyderabad : +13% YoY
- Bengaluru : +12% YoY
- Mumbai : +7% YoY
A structural shift is clearly visible: homes priced above INR 1 crore now account for around 50% of total sales — reflecting buyers’ preference for larger, better-quality homes in well-connected locations.
Developers have responded prudently — moderating new launches, focusing on execution, and offering targeted financing incentives rather than broad price corrections — helping sustain absorption.
Global Context & Outlook
Globally, easing monetary policies in Q3 2025 began supporting demand, but real price growth remains constrained in many markets due to lingering inflation. Emerging and select European markets led nominal gains, while several mature markets (Northern Europe, parts of East Asia) continued to see declines.
Liam Bailey, Knight Frank’s Global Head of Research, noted: “Nominal growth has edged higher again as central banks pivot towards cuts, but real gains are still hard-won. To see firmer growth into 2026, policymakers will need to maintain easing while inflation continues to retreat.”
Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, commented: “India’s housing market continues to stand apart in a global environment that remains uneven. The combination of strong economic growth, easing financial conditions and a decisive shift towards end-user-led demand has created a more mature and resilient residential cycle. As we move into 2026, we expect the market to be defined by stable absorption, selective price appreciation and disciplined supply, rather than speculative excess.”
With India’s economic fundamentals robust and monetary conditions turning supportive, the residential sector remains well-positioned to sustain its global outperformance in the year ahead.
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