India vs Australia: Whose Real Estate Market Wins the Match?
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A. High-level snapshot (now—Oct 2025)
India: steady, broad-based, modest price growth with strong momentum in premium/luxury segments and faster rent inflation in specific micro-markets. RBI’s All-India HPI showed modest y/y growth in the recent series (Q4 FY2024-25).
Australia: national dwelling values have recovered and are rising again after the 2024–25 rate cycle; affordability remains a major constraint. CoreLogic / Cotality data show renewed price gains and strong rent growth / low vacancy. Also, the government enacted temporary limits on foreign purchases of established dwellings from 1 Apr 2025 (to 31 Mar 2027).
Latest RBI/HPI-based/industry snapshots (Q4 FY24-25 / mid-2025 reporting) show modest y/y house-price growth (low single-digit %) across many cities, with pockets (NCR, Bengaluru, parts of Mumbai/Pune) doing better. Premium projects are outperforming mass market in value growth.
Australia
After a long period of high rates, Australia’s market rebounded in early-to-mid 2025—national indices reported new highs / consecutive monthly increases in 2025 and strong momentum into spring 2025. But long-term affordability ratios are stretched (median price to income very high in Sydney/Melbourne).
2) ROI / rental yields (residential)
India
Gross rental yields vary widely by city and segment. Nationwide averages are around ~4–5% gross in mid-2025, with some Tier-2 cities and certain micro-markets posting higher yields (5–6%+); top metros often show lower net yields after costs. Rental inflation in metros has been strong in recent quarters (some reports of double-digit year-on-year rent rises earlier, moderating into 2025)
Australia
Capital-city gross yields typically sit lower than many Indian markets, often in the ~3–4% band for houses/units depending on city; however rents have risen strongly (CoreLogic reporting median rents up high single digits YoY in 2025) and vacancy rates are very low — which supports rental income and can push total returns. Low vacancy + rent growth has helped investor cashflows despite lower headline yields.
3) Demand for luxury/prime housing
India
Luxury / branded residences are booming. Reports from Knight Frank / JLL in 2025 show premium segment growth outpacing the mass market: branded residences and high-end projects are increasing supply and buyer interest. H1-2025 data showed luxury outperforming overall sales volumes/value.
Australia
Prime/ultra-prime in Australia remains highly sought after by wealthy domestic buyers; however, government measures (surcharges, foreign-buyer restrictions and the 2025 temporary ban on established-dwelling purchases by many foreign buyers) have reduced a portion of offshore demand for existing homes — new-build prime assets and trophy listings still trade but with tighter foreign appetite.
4) Sustainability & green building trends
India
Developers and commercial owners are increasingly adopting green building certifications, energy-efficient designs, rooftop solar, and EV charging, often driven by occupier demand and operational savings. Several large developers are marketing “green” premiums; payback periods for efficiency investments are often cited in the ~5–10 year range depending on measures. Government incentives and GRIHA/IGBC frameworks support adoption
Australia
Strong market and finance focus on sustainability: major banks and lenders (e.g., NAB) are expanding green finance for buildings and retrofits; investors increasingly price in energy performance and climate resilience. Regulatory and investor pressure (net-zero commitments, disclosure) is well advanced; green retrofits and new low-emission developments are a growing portion of lending and transactions.