House price growth in the world’s 55 leading markets accelerated in the third quarter of 2025, according to Knight Frank. Last summer, average global prices rose 2.4% year on year, up from 2.2% in the second quarter, representing a modest improvement, although with significant variation between countries. Of the 48 markets recording growth, the largest increases were in Turkey (32.2%), North Macedonia (25.1%) and Portugal (17.7%), while Spain ranked among the top 10 with a 12.1% annual rise. The steepest declines were seen in Finland (-9.5%) and China (-5.5%).
Global monetary policy is providing support. “Through Q3 2025, central banks have not implemented any rate hikes and have introduced 27 cuts, extending the easing phase that began at the start of the year. This increasingly widespread policy shift is helping to reduce financing costs and support demand in a growing number of markets,” notes the Global House Price Index report.
Turkey again tops the index with nominal annual growth of 32.2%, although high inflation reduces real growth to -0.8%. North Macedonia (25.1%) and Portugal (17.7%) complete the top three, while European countries dominate the upper rankings. Of the eight markets with gains exceeding 10%, seven are in Europe: in addition to North Macedonia and Portugal, there is Bulgaria (15.4%), Hungary (15.1%), Croatia (13.8%), Spain (12.1%) and Slovakia (11.7%).
At the other end of the spectrum, Finland recorded the largest annual decline with a 9.5% fall, while China (-5.5%) and Canada (-2.6%) also saw notable drops. Hong Kong registered a smaller year-on-year decrease of 0.8%.
In several markets, inflation continues to erode purchasing power, limiting affordability even as official interest rates trend lower. With easing policies becoming more widespread, sustained improvements in growth will require stronger policy support and a clearer reduction in price pressures.
“Nominal growth has picked up slightly as central banks lean towards rate cuts. To achieve stronger growth in 2026, policymakers will need to maintain accommodative monetary policy while inflation continues to ease,” said Liam Bailey, global head of research at Knight Frank.
