Homebuyers Alert! With home loan EMIs set to get cheaper and premium property prices already inching up — you may be running out of time to buy right. The Q2 2025 Knight Frank-NAREDCO Sentiment Index reveals a key shift in the Indian housing market: optimism is back, borrowing is easier, and builders are betting big on premium buyers — not budget ones.
If you’re waiting for prices to drop or better offers to come later — you might be on the wrong side of the curve.
🟢 Sentiment Has Reversed — Developers Are Confident Again
After a year of doubt, real estate players are finally back in the game.
| Sentiment Score | Q1 2025 | Q2 2025 | What It Means |
|---|---|---|---|
| Current Score | 54 | 56 | Slight optimism |
| Future Score | 56 | 61 | Growing confidence |
“Q2 2025 represents a turning point… stakeholders are repositioning for long-term growth.”
— Shishir Baijal, CMD, Knight Frank India
🧠 Why this matters to you:
When developers feel positive, they:
- Launch more projects
- Raise prices steadily
- Focus on faster delivery
This directly affects your options, costs, and buying timeline.
📉 EMIs Are Falling — But Not for Long
The RBI has already cut repo rates by 100 bps in H1 2025, leading to:
- Lower home loan rates
- Cheaper EMIs
- Easier access to housing credit
💬 “Developers’ outlook has strengthened amid improved liquidity and lower borrowing costs.”
— Hari Babu, President, NAREDCO
🧠 Why this matters to you:
The lower EMI window won’t last forever. Once property demand picks up further, interest rates could stabilise or even rise again. This is a limited-time affordability boost.
🏠 Premium Homes Are Booming — Budget Homes Are Fading
The report makes it clear: developers are chasing premium buyers. Homes priced above ₹1 crore are seeing:
- More launches
- More funding
- Faster sales
Meanwhile, mid-income and affordable projects are facing:
- Delays in launch
- Lower margins
- Cautious funding
“Premium and lifestyle-led launches are being curated for high-performing micro-markets.”
— Knight Frank Research
🧠 Why this matters to you:
If you’re a mid-income buyer, your options may shrink. If you’re a premium buyer, you’re in the spotlight — and prices could rise fast.
📍 Top Markets to Watch — Sentiment by Region
| Region | Q1 2025 | Q2 2025 | What’s Driving Demand |
|---|---|---|---|
| North (NCR) | 48 | 55 | Infra push + premium revival |
| West (Mumbai/Pune) | 58 | 61 | Supply tightening + job market recovery |
| South (BLR/HYD) | 58 | 63 | IT hiring + lifestyle housing |
| East (Kolkata) | 61 | 61 | Steady mid-market confidence |
🧠 Why this matters to you:
If you’re buying in the South or West, price momentum may rise sooner. If you’re in the North, there’s early-stage opportunity. But no region is showing pessimism — that’s a clear sign of a market pivot.
📈 Prices Are Holding — With Some Cities Racing Ahead
- 94% of stakeholders expect prices to stay stable or rise
- Double-digit price growth already seen in:
- Bengaluru
- NCR
- Chennai
| City | YoY Growth (H1 2025) | Trend Driver |
|---|---|---|
| Bengaluru | 10–12% | Tech hiring, gated living |
| NCR | 9–11% | New infra, premium demand |
| Chennai | 8–10% | High-end resale activity |
🧠 Why this matters to you:
Waiting for a price correction? It’s not happening — and in key markets, it’s already too late. This could be your last chance at current pricing.
💸 Funding is Back — More Supply is Coming (But Not Everywhere)
| Funding Sentiment | Q1 2025 | Q2 2025 |
|---|---|---|
| Capital stable or improving | 79% | 90% |
| Expectation of improvement | 36% | 40% |
“Capital providers are realigning with developers — especially in premium and commercial segments.”
🧠 Why this matters to you:
Expect better funded projects, more timely possession, and more branded developers — especially if you’re buying above ₹1 crore.
🧾 Bottom Line for Homebuyers
✅ Interest rates are low — don’t miss the window
✅ Prices are holding or rising — especially in top cities
✅ Developers are doubling down on premium homes
✅ Affordable housing is being sidelined — choose carefully
✅ Macro indicators are strong — this isn’t a temporary spike
Also Read: Consumer Housing Sentiment Index robust; strong buyer confidence and rising incomes boost the sector
