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India ranks among the top ten global residential markets, with property prices rising 9.6 per cent year-on-year (YoY), well above the global average, driven by strong domestic demand, improved affordability, and a stable macroeconomic environment, according to the report released by real estate services firm Knight Frank on Tuesday.

The report noted that residential sales across the top eight cities remained steady in 2025, exceeding 3.48 lakh units, with the second half of 2025 recording the highest sales volumes 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, as reported by IANS.

Price growth was broad-based, led by the National Capital Region (NCR) at 19 per cent, followed by Hyderabad (13 per cent), Bengaluru (12 per cent), and Mumbai (7 per cent).

The gains were largely driven by premium and mid-to-premium housing, supported by cumulative interest rate cuts, benign inflation, and rising household incomes.

The report established that a structural change had occurred because homes which cost more than Rs 1 crore represented approximately 50 per cent of complete residential market sales, while developers reduced their project launches to concentrate on completing existing work, and they used financial incentives to sustain sales instead of decreasing prices.

“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,” Baijal added.

In Q3 2015, price growth was gradually picking up around global housing markets, assisted by easing monetary conditions that started to feed through to demand.