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.

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