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India's real estate sentiment remained steady in the October-December quarter of 2025, supported by stable liquidity conditions and sustained office demand, as per the Knight Frank-NAREDCO Real Estate Sentiment Index. Both current and future sentiment stayed in positive territory, indicating balanced confidence across asset classes. Office leasing activity across major cities continued to anchor overall outlook, while residential demand showed resilience despite moderated sales momentum. Institutional stakeholders reported stronger confidence than developers, reflecting a cautious but stable market environment as the sector moved towards 2026.
Real estate sentiment in India stayed firm during the final quarter of 2025, reflecting steady market conditions and continued confidence among stakeholders. According to the Knight Frank-NAREDCO Real Estate Sentiment Index, both current sentiment and expectations for the near term remained above the neutral mark, indicating stability rather than acceleration in the market. Advertisement
The current sentiment index recorded a marginal improvement over the previous quarter, supported by stable liquidity in the financial system and easing inflationary pressures. Respondents indicated that access to funding had improved compared to earlier in the year, although capital deployment remained selective, with greater emphasis on project viability and asset quality.
Future sentiment also held steady, suggesting that stakeholders expect market conditions to remain broadly supportive in the coming months. This outlook was largely driven by consistent demand in the office segment, which continued to perform well across major commercial hubs. Office leasing activity, particularly from Global Capability Centres and technology-led occupiers, contributed to positive sentiment, with limited supply of Grade A spaces supporting rental stability.
Regional trends showed modest improvement across most zones. The southern, western and eastern regions reported relatively stronger confidence, aided by active office markets and steady residential demand. The northern region also saw sentiment improve from earlier softness, supported by renewed commercial activity and infrastructure-linked development.
Institutional participants such as banks, financial institutions and private equity investors expressed higher confidence levels compared to developers. Developers remained cautious, focusing on calibrated launches, controlled supply additions and maintaining financial discipline. This divergence reflected a market that is stable but still mindful of external economic risks.
In the residential segment, sentiment improved slightly despite sales volumes normalising from previous highs. Demand in mid-to-premium housing segments remained steady, supported by end-user interest and improved affordability conditions. However, developers continued to align new supply closely with visible demand.
Overall, the index highlighted that while growth has moderated, fundamentals remain intact, with office demand and liquidity conditions playing a key role in sustaining confidence.
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