The global real estate market in 2025 has seen big changes, with many cities showing sharp rises in home prices. This growth mirrors wider economic trends, new city projects, and shifts in investor interests. Below are the top 10 cities leading this increase, based on the latest data from Knight Frank’s Prime Global Cities Index.
- Seoul, South Korea – 18.4% Annual Growth Seoul ranks first worldwide with an impressive 18.4% rise in premium home prices each year. Wealth is growing fast, more institutions are investing in high-end homes, and demand remains strong in the luxury market.
- Dubai, United Arab Emirates – 16.4% Annual Growth Dubai keeps climbing, with property prices rising 16.4% annually. Its tax-free rules, efforts to attract wealthy buyers, and a strong economy make the city even more attractive.
- Tokyo, Japan – 15.5% Annual Growth Tokyo’s market benefits from low-interest rates and steady economic growth. The mix of old traditions and modern style draws both Japanese and foreign buyers, pushing prices up by 15.5%.
- Bengaluru, India – 8.3% Annual Growth Bengaluru stands out with an 8.3% annual increase in prime property prices. Known as India’s Silicon Valley, its developing infrastructure and tech boom have raised property values. Popular areas include Whitefield, Sarjapur Road, and Hebbal.
- Mumbai, India – 7.6% Annual Growth Mumbai remains a top choice for luxury buyers, with a 7.6% rise each year. Its financial power and ongoing projects keep demand high, especially in South Mumbai and the western suburbs.
- Bangkok, Thailand – 7.4% Annual Growth Bangkok’s property market is bouncing back, with prices rising 7.4% annually. More foreign investors and recovering tourism helped fuel this growth.
- Lisbon, Portugal – 5.7% Annual Growth Lisbon draws many foreigners thanks to friendly residency options. Its lively culture and steady economy help push prime home prices up by 5.7%.
- Madrid, Spain – 5.5% Annual Growth Madrid’s lively culture and strong economy attract investors. Its mix of old charm and modern features makes it appealing to many buyers, leading to a 5.5% rise in home prices.
- Manila, Philippines – 5.5% Annual Growth Manila’s growth comes from its rising middle class and more city development. The city’s luxury home prices increased 5.5% each year, making it a new market for upscale homes.
- Dublin, Ireland – 4.7% Annual Growth Dublin’s tech industry and good business climate boost demand for prime homes. Prices grew 4.7% annually as wealthy individuals continue to move into the city.
This year’s property market shows a mix of stability, new development, and changing investor tastes. Cities like Seoul, Dubai, and Tokyo lead with big jumps, while places like Bengaluru and Manila show promise for future growth. These trends highlight the importance of smart investment and the growing appeal of top residential properties around the world.