India’s residential property market strengthened its position among the world’s top-performing housing markets in 2025, with India housing prices recording significantly faster growth than most global peers. International housing data for the year places India within the top ten markets globally for annual price appreciation, highlighting the sector’s resilience amid uneven economic recovery across regions.
At a global level, residential price growth remained muted through much of 2025 as affordability pressures, inflation and cautious buyer sentiment weighed on mature economies. While several emerging markets recorded sharp nominal gains, real price growth in many countries was diluted by high inflation. Against this backdrop, India housing prices stood out for being supported by comparatively stable macroeconomic conditions and broad-based end-user demand rather than speculative activity. The global environment improved marginally during the year as central banks across major economies signalled a shift towards lower interest rates. This helped stabilise housing demand in select regions, particularly in parts of Europe and emerging markets. However, several developed economies in Northern Europe and East Asia continued to see flat or negative housing performance, underscoring the uneven nature of the global recovery. Domestically, residential sales across India’s major urban centres remained steady in 2025, even as prices firmed. Transaction volumes in the second half of the year reached multi-year highs, suggesting that buyer confidence remained intact despite higher ticket sizes. Market health indicators also remained balanced, with inventory overhang staying within comfortable limits. A marginal rise in unsold stock was largely attributed to an increase in premium and luxury project launches rather than a slowdown in demand.
Price appreciation was evident across most large cities, though growth varied by region. Northern and southern markets led the cycle, supported by infrastructure expansion, employment growth and sustained demand in mid-premium and premium segments. Mumbai’s metropolitan region, while registering comparatively moderate gains, continued to anchor the market by value, reflecting its depth and liquidity. A notable structural trend shaping India housing prices has been the growing dominance of higher-value homes. Properties priced above Rs 1 crore accounted for nearly half of all residential sales, reflecting changing household preferences towards larger homes, improved amenities and well-planned developments. Developers responded by moderating new launches and prioritising execution quality, delivery timelines and pricing discipline over volume-led expansion. Urban economists note that the increasing share of end-users has added stability to the residential cycle. Buyers are purchasing homes primarily for self-use, supported by improving income visibility and relatively benign borrowing conditions. This shift has reduced volatility and encouraged more sustainable price growth across cities.
Looking ahead to 2026, India’s housing market is expected to maintain its relative global outperformance. With steady urbanisation, disciplined supply pipelines and a growing emphasis on liveability and infrastructure alignment, India housing prices are likely to see selective appreciation rather than sharp spikes positioning the sector as one of the more resilient components of the global residential landscape.
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