The global real estate market in 2025 has witnessed significant shifts, with several cities experiencing remarkable growth in residential property prices. This surge reflects broader economic trends, urban development initiatives, and evolving investor sentiments. Below is an in-depth look at the top 10 cities leading this growth, based on the latest data from Knight Frank’s Prime Global Cities Index.
1. Seoul, South Korea – 18.4% Annual Growth
Seoul tops the global rankings with an impressive 18.4% annual increase in prime residential property prices. This growth is driven by rising wealth, increased institutional activity in the luxury residential segment, and a robust demand in its luxury housing market.
2. Dubai, United Arab Emirates – 16.4% Annual Growth
Dubai continues its upward trajectory, recording a 16.4% annual growth in prime residential prices. The city’s appeal is enhanced by its tax-free environment, strategic initiatives to attract high-net-worth individuals, and a thriving economy.
3. Tokyo, Japan – 15.5% Annual Growth
Tokyo’s real estate market benefits from low-interest rates and a stable economic environment, leading to a 15.5% annual increase in prime residential prices. The city’s blend of tradition and modernity continues to attract both domestic and international buyers.
4. Bengaluru, India – 8.3% Annual Growth
Bengaluru emerges as a global contender with an 8.3% annual increase in prime residential prices. The city’s status as India’s Silicon Valley, coupled with infrastructural developments, has propelled property values. Areas like Whitefield, Sarjapur Road, and Hebbal are particularly sought after.
Also read: Top 10 Real Estate Companies in India That Are Dominating the Market!
5. Mumbai, India – 7.6% Annual Growth
Mumbai maintains its appeal among luxury buyers, recording a 7.6% annual growth in prime residential prices. The city’s financial significance and ongoing infrastructure projects continue to drive demand, particularly in areas like South Mumbai and the western suburbs.
6. Bangkok, Thailand – 7.4% Annual Growth
Bangkok’s real estate market has seen a resurgence, with a 7.4% annual growth in prime residential prices. Increased interest from foreign investors and a recovering tourism sector have contributed to this price growth.
7. Lisbon, Portugal – 5.7% Annual Growth
Lisbon’s charm, coupled with favorable residency programs, has made it a hotspot for international buyers, leading to a 5.7% annual increase in prime residential prices. The city’s cultural vibrancy and economic stability continue to attract investors.
8. Madrid, Spain – 5.5% Annual Growth
Madrid’s cultural vibrancy and economic stability have attracted a wave of investors, resulting in a 5.5% annual growth in prime residential prices. The city’s blend of historical charm and modern amenities appeals to a diverse range of buyers.
9. Manila, Philippines – 5.5% Annual Growth
Manila’s growth is driven by a burgeoning middle class and increased urbanization, making it an emerging market in the luxury real estate sector. The city recorded a 5.5% annual increase in prime residential prices.
10. Dublin, Ireland – 4.7% Annual Growth
Dublin’s status as a tech hub and its favorable business environment have spurred demand in its prime residential market, leading to a 4.7% annual growth in prices. The city’s strong economic fundamentals continue to attract high-net-worth individuals.
The global real estate landscape in 2025 reflects a dynamic interplay of economic resilience, infrastructural development, and evolving investor preferences. Cities like Seoul, Dubai, and Tokyo lead the charge with double-digit growth, while emerging markets such as Bengaluru and Manila showcase significant potential. As urban centers continue to evolve, these trends underscore the importance of strategic investment and the growing appeal of prime residential properties worldwide.
