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India's Housing Prices Soar 9.6%, Outpacing Global Markets in 2025

India's residential property prices rose 9.6% year-on-year in 2025, placing it among the top ten global housing markets. Growth was broad-based, led by the National Capital Region at 19%, followed by Hyderabad and Bengaluru. The market is characterized by strong end-user demand, with premium homes priced above ₹1 crore making up half of all sales. Experts attribute the resilience to strong economic growth, easing financial conditions, and a shift away from speculative excess.

Key Points: India Housing Prices Rise 9.6%, Top Global Markets: Report

  • Prices up 9.6% year-on-year
  • NCR led growth at 19%
  • Sales steady at over 3.48 lakh units
  • Homes above ₹1 crore account for 50% of sales
2 min read

India's housing prices rise 9.6 pc outperforming peers: Report

India's residential prices surged 9.6% in 2025, ranking in the top ten globally, driven by strong demand and a stable economy.

"India's housing market continues to stand apart in a global environment that remains uneven. - Shishir Baijal"

New Delhi, Feb 3

India ranked among the top ten global markets with residential prices up 9.6 per cent year‑on‑year, significantly outperforming the global average supported by firm domestic demand, improving affordability and a stable macroeconomic environment, a report said on Tuesday.

The report from real estate services firm Knight Frank said that residential sales across the top eight cities remained steady in 2025 at over 3.48 lakh units, with H2 2025 volumes the highest since 2013.

"Market health indicators remained balanced, with the quarters-to-sell ratio holding at 5.8 quarters, despite a rise in unsold inventory driven largely by higher-value project launches," the firm said.

The report highlighted that price growth was broad‑based, led by the National Capital Region at 19 per cent, followed by Hyderabad at 13 per cent, Bengaluru at 12 per cent and Mumbai at 7 per cent.

The price growth reflected traction in premium and mid‑to‑premium housing supported by cumulative interest‑rate cuts, benign inflation and rising household incomes, the report highlighted.

A structural shift continued with homes priced above Rs 1 crore accounting for around 50 per cent of total residential sales, and developers moderating launches while prioritising execution and using financing incentives rather than price cuts to maintain absorption momentum, the report said.

"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 created a more mature and resilient residential cycle," said Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.

"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," he added.

Across global housing markets, price growth strengthened modestly in Q3 2025 as easing monetary conditions began to feed through to demand.

- IANS

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Reader Comments

P
Priya S
NCR at 19%! 😲 That's insane growth. It reflects the infrastructure push and new economic corridors. Good for existing homeowners, but I worry this will push affordable housing even further out of reach for the middle class in these cities.
R
Rohit P
The report says 50% of sales are for homes above 1 crore. This clearly shows where the market is heading. It's becoming a market for the wealthy, while the common man struggles. The government needs to incentivize true affordable housing, not just luxury apartments.
S
Sarah B
Stable macroeconomic environment and interest rate cuts are definitely helping. We bought in Hyderabad last year and already see good value appreciation. It feels more secure than other investments right now.
V
Vikram M
Outperforming global peers is a proud moment for India's real estate sector. It shows the world has faith in our growth story. The shift to end-user demand is healthy and should prevent a bubble. Kudos to all stakeholders! 🇮🇳
K
Karthik V
While the headline number is impressive, we must read the fine print. "Higher-value project launches" are driving unsold inventory. In Mumbai, the 7% growth might be sustainable, but 19% in NCR feels like it's running too hot. Hope the "disciplined supply" prediction holds true.

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