Mumbai, November 15, 2025: The 46th Knight Frank–NAREDCO Real Estate Sentiment Index for Q3 2025 (July–September) shows continued optimism across India’s property market, reinforcing the sector’s resilience amid global economic headwinds.

The Current Sentiment Score increased to 59, up from 56 in Q2 2025 — the highest level recorded this year — while the Future Sentiment Score held steady at 61, remaining firmly in the optimistic zone.

Stronger market fundamentals, robust office leasing, resilient high-ticket residential demand, stable interest rates, and improved liquidity have collectively boosted industry confidence.

Market Fundamentals Improve Across Segments

The positive sentiment is driven by:

• Stable interest rates and eased inflation
• Healthy domestic consumption
• Strong momentum in premium residential sales
• Deepening office leasing pipelines
• Consistent macroeconomic policy environment

Both developers and financial institutions reported growing confidence, reflecting broad-based improvement across the sector.

South Leads Optimism; North Shows a Strong Rebound

Sentiment remained optimistic across regions:

• South Zone: Highest score at 62, driven by strong leasing in Bengaluru and Hyderabad and robust demand for high-value homes.
• North Zone: Rose to 56, supported by steady office activity in NCR.
• East Zone: Slight moderation to 59 amid lower residential launches.
• West Zone: Dipped marginally to 59, though strong office absorption in Mumbai and Pune cushioned residential softness.

Developers Cautious, Non-Developers Steady in Confidence

• Developers’ sentiment: Moderated to 59 from 63 as they remain cautious due to elevated input costs and slower mid–low segment demand.
• Non-developers (banks, institutions, PE funds): Maintained stable optimism, recording a Future Sentiment Score of 61.

This alignment suggests market confidence anchored in liquidity, asset quality, and sustained formal-sector investment.

Residential Market: High-Ticket Demand Drives Optimism

Residential sentiment remained strong in Q3 2025:

• 71% expect launches to remain stable or increase
• 74% expect sales to stay stable or improve
• 92% expect prices to remain stable or rise

NCR, Bengaluru, and Hyderabad continued to lead price growth with 13%–19% YoY increases, driven by demand in upper-mid and premium categories.

Office Market: Strongest Performer Across Asset Classes

The office market displayed the highest level of optimism:

• Leasing: 55% expect an increase
• Supply: 38% expect growth, 40% expect stability
• Rents: 95% expect stability or upward movement

Limited Grade A supply, GCC expansion, IT-led demand, and growing pre-commitments continue to support sector strength.

Favourable Economic & Funding Environment

• 78% foresee stable or improved economic momentum
• 86% expect funding conditions to stay stable or get better

Easing inflation, strong fiscal spending, active capital deployment into premium housing, and the RBI’s accommodative stance are helping sustain market momentum.

Expert Commentary

Knight Frank India CMD Shishir Baijal said the sustained optimism “underscores the sector’s resilience and adaptability,” noting that steady demand in premium housing and a strong office pipeline continue to shape a positive outlook.

NAREDCO President Parveen Jain added that confidence remains supported by “policy continuity, stable demand, and healthy funding conditions,” especially in premium housing and office segments.

Conclusion

The Knight Frank–NAREDCO Sentiment Index for Q3 2025 reaffirms that India’s real estate sector remains on a solid growth trajectory. With inflation moderated, funding robust, and demand consistently strong across asset classes, the sector enters Q4 2025 with firm confidence and balanced growth expectations.

Also Read: Realty Stocks Close First Day of the Week on a Firm Note: DLF, Godrej, Lodha Lead Gains as Festive Tailwinds Persist

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The price increase is part of a broader trend across India’s top residential markets, where Bengaluru and NCR led the way with exceptional YoY price jumps of 16% and 12% respectively, but Mumbai remained significant due to its larger base and consistent sales momentum.

Key Highlights:

Residential Market Performance Snapshot (Q1 2025)

1. Sales Volumes

• Mumbai registered 24,930 units sold, the highest among all cities, reflecting a 5% YoY increase.
• Pune and Chennai emerged as strong performers with 20% and 10% growth in sales respectively.
• NCR and Bengaluru witnessed dips in sales, attributed to rising prices discouraging middle-segment buyers.

Table: Housing Sales Volumes

2. New Launches

• Mumbai continued to dominate with 25,706 units launched, showing a 2% YoY increase.
• Bengaluru saw a remarkable 26% growth in launches, responding to premium housing demand.
• Overall, new launches outpaced sales, keeping the inventory momentum intact.

Table: New Launches Across Cities

Premiumization of the Housing Market

• The share of homes priced above ₹10 million now constitutes 46% of the total sales (up from 40% in Q1 2024).
• Particularly, the ₹20-50 million segment surged, registering a 28% YoY growth in sales.
• Ultra-luxury segments like ₹200-500 million and above ₹500 million witnessed over 120%-400% growth, although the market remains niche.

Box: Ticket Size Breakdown of Sales

Inventory and Market Health

Despite robust sales, unsold inventory increased by 5% YoY, largely due to the high volume of new project launches.
However, the Quarters-to-Sell (QTS) ratio remains healthy at 5.9 quarters, indicating strong demand absorption.

Box: Inventory and QTS Summary

Conclusion

Mumbai’s residential market continues to show strength, backed by premiumization and a resilient economy. While rising prices are starting to challenge affordability in some segments, steady demand, particularly in the premium and luxury housing brackets, is ensuring market balance.

With expected interest rate reductions and improved liquidity conditions, the residential markets across India, led by Mumbai, appear well-positioned to sustain their growth momentum through 2025.

Also Read: Mumbai Sees A Decline Of 3% In Home Prices.

The post Mumbai Sees 6% Residential Price Surge appeared first on Square Feat India.

Panvel vs. Worli: A Case Study

Between 2019 and Q3 2024, Panvel’s average residential prices rose from ₹5,520 per sq. ft. to ₹8,700 per sq. ft., reflecting a 58% appreciation. Comparatively, Worli saw prices rise from ₹38,560 per sq. ft. to ₹53,000 per sq. ft., translating to a 37% growth. Lower Parel, another prime Mumbai area, recorded a 49% increase, while peripheral Virar matched Panvel’s 58% growth, with prices climbing from ₹4,440 per sq. ft. to ₹6,850 per sq. ft.

City-Wide Trends in Top 7 Cities

Across India’s top seven cities, peripheral areas have outperformed their prime counterparts in price growth over the last six years. Improved connectivity, enhanced infrastructure, and the availability of spacious housing projects in peripheral areas have fueled this trend.

• Bengaluru: Gunjur, a peripheral area, topped the charts with a 69% price jump, while Thanisandra Main Road, a prime location, saw a 62% increase.
• NCR: Noida Expressway prices grew by 66%, outpacing Raj Nagar Extension, which saw a 55% rise.
• Pune: Wagholi (peripheral) grew by 37%, compared to Wakad (prime), which recorded a 27% increase.
• Kolkata: Peripheral Madhyamgram saw 43% appreciation, while prime Joka grew by 51%.
• Chennai: Navalur (peripheral) grew by 54%, outpacing Anna Nagar (prime), which saw a 35% rise.
• Hyderabad: Gachibowli and Kondapur, both prime locations, recorded 86% price growth each, surpassing peripheral areas like Kompalli and LB Nagar.

Drivers of Peripheral Growth

Santhosh Kumar, Vice Chairman of ANAROCK Group, attributes this trend to the higher scope for appreciation in peripheral areas compared to already established prime locations. Improved infrastructure, connectivity, and the availability of luxury housing projects in these areas have also driven demand.

“With the pandemic pushing buyers towards larger homes and open spaces, developers have focused on creating state-of-the-art projects in the peripheries,” Kumar added. “These areas offer better value for money and align with post-pandemic housing preferences.”

Conclusion

As housing trends evolve, peripheral areas are emerging as strong contenders to traditional prime markets. Panvel’s rise against Worli exemplifies the shifting dynamics, reflecting the growing allure of affordability and liveability in India’s outskirts.

Also Read: Panvel Real Estate Market Sees Robust Growth

The post Panvel’s Housing Price Surge Outshines Prime Worli in MMR: Peripheral Areas Outpace City Centers in Growth appeared first on Square Feat India.

Growing Demand for Green Building Certifications

Scope of the Trend: Green building certifications are becoming a standard expectation rather than an exception in India’s real estate market. These certifications, provided by IGBC and LEED, signify that a building meets rigorous standards for energy efficiency, sustainability, and environmental performance.

Indian Green Building Council (IGBC): The IGBC, a part of the Confederation of Indian Industry (CII), offers various certification programs tailored to different types of buildings, including residential, commercial, and industrial structures. IGBC certifications are designed to promote sustainable building practices and help builders achieve higher environmental performance.

Leadership in Energy and Environmental Design (LEED): LEED, a globally recognized green building certification system developed by the U.S. Green Building Council (USGBC), evaluates buildings based on their sustainability, energy efficiency, and environmental impact. LEED certifications are highly sought after by developers aiming to showcase their commitment to green building standards on an international scale.

Why the Shift Towards Green Building?

Environmental and Climate Considerations: The increasing frequency of extreme weather events and rising concerns about climate change are driving the demand for green building practices. By incorporating energy-efficient technologies and sustainable materials, green buildings contribute to reducing carbon footprints and minimizing environmental impacts.

Regulatory Pressures: Government regulations and policies are increasingly favoring sustainable construction. Incentives and mandates for green building practices are being introduced to encourage developers to adopt environmentally friendly practices. This includes benefits such as tax breaks and faster approval processes for certified buildings.

Market Demand: There is a growing preference among investors and consumers for environmentally responsible and energy-efficient buildings. As awareness of environmental issues increases, potential buyers and tenants are increasingly seeking properties that offer sustainable features and lower utility costs.

Notable Examples of Green Building Projects

**1. *Lodha Bellissimo, Mumbai*: This luxury residential development has achieved IGBC Platinum certification, showcasing its commitment to energy efficiency, water conservation, and sustainable building practices. The project includes features such as rainwater harvesting systems, energy-efficient lighting, and green roofs.

**2. *Infosys Campus, Bangalore*: Infosys, a major IT company, has several campuses across India that are LEED certified. The company’s Bangalore campus, which has achieved LEED Platinum certification, is renowned for its energy-efficient design, use of renewable energy sources, and comprehensive waste management systems.

**3. *Cognizant Technology Solutions, Chennai*: Cognizant’s office building in Chennai has been awarded LEED Gold certification. The building incorporates sustainable practices such as efficient HVAC systems, water-saving fixtures, and materials with low environmental impact.

**4. *Dhirubhai Ambani International School, Mumbai*: This educational institution has earned IGBC Green School certification for its emphasis on sustainable building practices and environmental education. Features include energy-efficient lighting, rainwater harvesting, and extensive use of natural light.

Also Read: Surge in Green Office Spaces: Bengaluru and Mumbai Lead as Demand Soars in H1 2024

The Future of Green Building in India

Source: According to a recent report by the Indian Green Building Council (IGBC), the number of green buildings in India has seen a substantial increase over the past decade. The IGBC estimates that over 5,000 buildings across the country have achieved some form of green certification.

Conclusion: The rise in green building certifications in India reflects a significant shift towards more sustainable and environmentally conscious construction practices. As more developers and real estate projects seek IGBC and LEED certifications, the Indian real estate sector is set to play a crucial role in addressing environmental challenges and promoting energy-efficient building practices. This trend not only benefits the environment but also aligns with the growing market demand for sustainable and energy-efficient properties.

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