As we move through 2025, real estate markets around the world are revealing key trends shaped by shifting buyer behaviour, infrastructure investment, and macroeconomic conditions. While no two regions are moving in perfect sync, we’re seeing some common threads: affordability pressure, the impact of interest rates, and urban decentralisation. Here's a closer look at what's happening in the UK, India, and other select global markets.

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United Kingdom

UK house prices saw a 0.8% drop in June, according to recent market reports, with annual growth hovering around 2% to 2.5%. While this may appear modest, it marks a welcome cooling from the overheated post-COVID market. Rising mortgage costs have tempered demand, especially in London and the South East, where prices remain significantly higher than regional averages.

Interestingly, the North of England and parts of Scotland continue to perform relatively well, buoyed by more affordable price points and ongoing urban regeneration projects. First-home buyer activity remains steady, especially in cities like Manchester, Leeds, and Glasgow, where value and lifestyle combine attractively.

Key takeaway: A more balanced market is emerging, with pricing stabilisation and improved buyer choice—but affordability remains a central concern.

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India

India's urban property markets are showing mixed signals. On one hand, cities like Pune are experiencing a dramatic price surge, especially in suburbs connected to the newly launched metro corridors. Areas like Hinjewadi, Wakad, Baner and Aundh have seen price appreciation of up to 300% since 2021, driven by improved transport, increasing tech sector employment, and growing demand for modern housing stock.

By contrast, Hyderabad, which had been on a strong growth trajectory, saw a 6% drop in home sales in Q2 2025. Rising property prices and interest rates are making buyers more cautious, with activity softening in both central and suburban districts. However, Hyderabad’s long-term fundamentals remain strong, supported by its status as a tech and biotech hub.

Key takeaway: In India, metro connectivity and urban infrastructure upgrades are powerful catalysts—but high pricing and inflationary pressures are tempering demand in some cities.

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Asia Pacific

• Singapore: Prices in the private residential market have stabilised in 2025 after several quarters of strong growth. Government cooling measures, including additional buyer stamp duties and tightened lending rules, have had a tangible effect. Foreign investment remains strong, particularly from Chinese and Indian nationals seeking long-term safe-haven assets.
• Australia: Major markets like Sydney and Melbourne are dealing with low stock levels and rising rents, which are pushing investors back into the market. However, interest rate pressure and construction cost challenges are slowing down new development launches, especially in the apartment sector.
• China: Despite government stimulus, buyer sentiment remains muted due to broader economic uncertainty and the legacy of the Evergrande crisis. Tier 1 cities are faring better, but the broader market recovery is slow.

Key takeaway: Asia-Pacific markets are recalibrating, with lifestyle-led suburban shifts, policy-driven cooling, and ongoing affordability tension shaping 2025.

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Europe

• Germany: Berlin and Munich continue to face severe housing shortages, driving up prices for both renters and buyers. However, regulatory hurdles for new developments remain a challenge for supply expansion.
• Portugal and Spain: Coastal cities and smaller towns are seeing renewed interest from international buyers, particularly digital nomads and retirees, supported by visa reforms and lifestyle shifts post-pandemic.
• France: Paris remains relatively stable, although the luxury segment is showing signs of slowing, particularly with tighter lending rules.

Key takeaway: In Europe, regulatory and demographic trends are colliding. Secondary cities and lifestyle locations are rising stars, while major metros remain constrained by policy and price.

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The global property market in 2025 is defined by regional divergence. Markets like Pune and Manchester are growing on the back of infrastructure and affordability, while others—like Hyderabad and London—are cooling under the weight of cost and caution.

What unites many of these trends is the importance of connectivity, liveability, and value-for-money. Whether it’s metro lines in India or regeneration projects in northern England, infrastructure remains one of the most powerful levers in property value creation.

As always, the most successful investors and developers will be those who read the signals early, focus on fundamentals, and stay flexible in strategy.

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