The global residential real estate market in 2025 has exhibited remarkable dynamism, with several cities experiencing significant price growth. This surge is attributed to factors such as increased demand from high-net-worth individuals, infrastructural developments, and favorable economic conditions. Drawing from comprehensive data and reports by leading real estate consultancies and financial institutions, we present an in-depth analysis of the top 10 cities that have led the charge in residential real estate price appreciation in 2025.
Top 10 Cities Globally with the Highest Residential Real Estate Price Growth
1. Dubai, UAE
Dubai continues to dominate the global real estate scene with its luxury residential market experiencing an impressive 16.9% price increase in 2024, positioning it as a frontrunner in 2025. Factors contributing to this growth include an influx of high-net-worth individuals, liberal visa policies, and significant infrastructural projects. The city’s prime properties now command $930 per square foot (€9,200 per square metre).
2. Seoul, South Korea
Seoul emerged as the top-performing market in 2024, witnessing an annual price increase of 18.4%. This growth occurred despite ongoing political uncertainties, highlighting the resilience of its luxury real estate sector. The city’s luxury apartments dominated sales, with 53.8% of transactions exceeding 900 million won
3. Manila, Philippines
Manila’s luxury residential market maintained strong annual growth throughout 2024, with a notable 26% annual rise in Q2 2024. Although there was a cooling in the final quarter, the city’s real estate sector remains robust, driven by a growing economy and increased foreign investment.
4. Mumbai, India
Mumbai recorded a 13% year-on-year price rise in prime residences in Q2 2024, marking it as the second-highest globally. This growth is attributed to strong demand in the luxury segment and a surge in high-end residential developments.
5. New Delhi, India
New Delhi’s luxury housing market saw a 6.7% year-on-year growth in 2024, propelling it to the 6th position globally. The city’s real estate sector has benefited from affluent homebuyers seeking lifestyle upgrades amidst a strong economic backdrop.
6. Cape Town, South Africa
Cape Town’s property market has demonstrated consistent strength, with average property prices increasing by 36% from 2014 to 2024. Notably, the suburb of Kalk Bay experienced an 83% increase over four years, and Scarborough saw a 241% rise over nine years. These surges are driven by high demand, limited supply, and significant municipal investments.
7. Madrid, Spain
Madrid’s prime residential market experienced a 9.4% increase in 2024, with forecasts suggesting continued growth of up to 5.9% in 2025. The city’s appeal to foreign buyers, especially those with dollar-denominated savings, has been a significant growth driver.
8. Barcelona, Spain
Barcelona followed closely with an 8.6% price increase in 2024. Similar to Madrid, the city’s real estate market is buoyed by foreign investment and a favorable exchange rate, making it an attractive destination for luxury property buyers.
9. Tokyo, Japan
Tokyo’s luxury real estate market rebounded with a 10.6% increase in Q4 2024, reversing earlier declines. The weakened Yen and Japan’s highest interest rates in 17 years have attracted foreign buyers, contributing to this growth.
10. Lisbon, Portugal
Lisbon’s prime residential market is projected to see a 4-5.9% appreciation in 2025. The city’s appeal lies in its lifestyle offerings, favorable climate, and relatively affordable luxury properties compared to other Western European capitals.
Conclusion
The residential real estate markets in these top 10 cities have demonstrated remarkable resilience and growth in 2025. Factors such as economic stability, foreign investment, infrastructural developments, and favorable governmental policies have played pivotal roles in driving property prices upward. Investors and homebuyers looking for opportunities in the global luxury real estate market should consider these cities for their robust performance and promising outlook.