Housing Market 2025: Where Are Prices Rising the Fastest?

In the first quarter of 2025, global housing markets showed signs of recovery following the end of the post-pandemic price boom. According to the Knight Frank Index, property prices across 55 countries increased by an average of 2.3% after a slowdown caused by central banks’ rate hikes.

Adjusted for inflation, global housing values actually fell by 0.4%, and in eight countries, even with nominal growth, real prices declined. The current growth pace (2.3%) remains below the long-term trend (5.1%). According to Knight Frank, further demand support will depend on monetary policy easing amid central bank rate cuts.

Leaders and Laggards

Turkiye posted the strongest nominal growth of +32.2%, but due to high inflation, its real growth was –4.2%.

The sharpest declines (both nominal and real) were recorded in China, Hong Kong, Ukraine, Finland, and New Zealand.

Southern Europe leads in real growth: North Macedonia, Bulgaria, Croatia, Slovakia, Hungary, Portugal. The top 10 also includes the Netherlands, Colombia, and Japan.

Top 10 annual growth rates (nominal):

1. Turkiye +32.2%

2. North Macedonia +22.6%

3. Portugal +16.9%

4. Bulgaria +15.1%

5. Croatia +13.1%

6. Hungary +12.1%

7. Slovakia +11.4%

8. Netherlands +10.6%

9. Colombia +9.9%

10. Japan +9.5%

Top 10 annual growth rates (real, inflation-adjusted):

1. North Macedonia +24.2%

2. Portugal +14.8%

3. Bulgaria +10.6%

4. Croatia +9.6%

5. Slovakia +7.2%

6. Hungary +7.1%

7. Spain +6.6%

8. Netherlands +6.6%

9. Czech Republic +6.5%

10. Japan +5.6%

Global Housing Wealth

According to Savills, by the end of 2024 the total value of global residential real estate reached $286.9 trillion (–2.7% YoY in USD terms). Most countries saw growth in local currency, but this was offset by a downturn in China (–5.2% in local currency, –8% in USD) due to falling prices and a slowdown in new construction. The strong US dollar at the end of 2024 further amplified this effect.

Even with the decline, global housing wealth is still 19% above 2019 levels.

The largest markets by value (71% of the global total) are: China, USA, Japan, Germany, UK, France, Canada, Australia, South Korea, and Italy. China accounts for 26% and the USA 18% — together making up 44% of the global housing market value.

Distribution of Housing Wealth vs. Population

Europe holds 25% of global housing wealth with only 10% of the world’s population. North America holds 22% with 6% of the population. Africa and Asia, despite large populations, account for a smaller share of wealth — underscoring future growth potential.

India, the most populous country, currently ranks only 16th by housing market value, signaling significant growth potential.

Housing Prices in Turkiye (Endeksa)

Endeksa data for July 2025:

• Average home price — ₺4.4 million (~$107,880)

• Average price per m² — ₺33,832 (~$819)

• Average payback period — 13 years

Real price dynamics: –4.9% (inflation-adjusted), suggesting relative undervaluation amid tight monetary policy, which continues to support demand.

Major cities:

• Ankara: +37.9% nominal, +2.7% real; avg. ₺30,060 per m²; avg. home ₺3.9 million.

• Istanbul: +27.8% nominal, –4.8% real; avg. ₺51,447 per m²; avg. home ₺5.9 million.

• Izmir: +27.8% nominal, –4.8% real; avg. home ₺5.6 million.

• Antalya: +24.4% nominal, –7.4% real; avg. home ₺4.9 million.

Rental Market:

• Rental rates grew +32.8% YoY, but fell –1.1% after inflation adjustment.

• Average rent: ₺23,402 per month

• Average: ₺225 ($5.5) per m²

Sources: Knight Frank (Global House Price Index, Q1 2025); Savills (Global Residential Value, 2024); Endeksa (July 2025).

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