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By:

Bhalchandra Chorghade

11 August 2025 at 1:54:18 pm

Real estate sentiment steadies ahead of 2026

India’s real estate sector appears to have regained its equilibrium in the final quarter of 2025, with stakeholder sentiment stabilising after a phase of moderation earlier in the year. The 47th edition of the Knight Frank–NAREDCO Real Estate Sentiment Index for Q4 2025 (October–December) indicates that both current and future outlooks remain firmly in the optimistic zone, underpinned by improving macroeconomic visibility, easing inflationary pressures and steady funding conditions. The...

Real estate sentiment steadies ahead of 2026

India’s real estate sector appears to have regained its equilibrium in the final quarter of 2025, with stakeholder sentiment stabilising after a phase of moderation earlier in the year. The 47th edition of the Knight Frank–NAREDCO Real Estate Sentiment Index for Q4 2025 (October–December) indicates that both current and future outlooks remain firmly in the optimistic zone, underpinned by improving macroeconomic visibility, easing inflationary pressures and steady funding conditions. The Current Sentiment Score edged up marginally to 60 in Q4 2025 from 59 in the preceding quarter, while the Future Sentiment Score held steady at 61. Although these readings remain below the peaks witnessed during 2023–24, they reflect a market that has absorbed recent volatility and is now progressing on more stable fundamentals. The stabilisation suggests that stakeholders are tempering expectations while retaining confidence in the sector’s medium-term prospects. A key driver of this optimism is the strengthening domestic macroeconomic environment. Real GDP growth accelerated to 8.2 per cent in Q2 FY 2025–26, a sharp improvement over the 5.6 per cent recorded in the corresponding period last year. High-frequency indicators continue to signal sustained economic momentum, helping offset global uncertainties. According to Shishir Baijal, Chairman and Managing Director, Knight Frank India, stronger macro visibility, steady funding conditions and disciplined decision-making across stakeholders have collectively reinforced confidence. He noted that calibrated residential supply and robust office leasing activity are providing structural support to the market. Funding availability sentiment also improved during the quarter. Most respondents expect liquidity conditions to remain stable or improve, aided by policy continuity and a sustained focus on asset quality. While lenders and investors continue to adopt a selective approach, capital access across asset classes remains supportive, indicating confidence in the sector’s underlying fundamentals rather than speculative expansion. Regionally, future sentiment strengthened modestly across all zones, with every region remaining in the optimistic zone. The South Zone retained its leadership position with a score of 62, driven by strong office leasing in Bengaluru and Hyderabad and resilient demand in higher-ticket residential segments. The East Zone improved to 62 on the back of steady mid-segment housing demand, while the West Zone also strengthened to 62, supported by stable commercial activity and a calibrated approach to residential development. The North Zone recovered to 59, reflecting stabilising sentiment after earlier softness, aided by steady office traction and ongoing infrastructure momentum. The broad-based regional improvement underscores confidence anchored in urban demand and improving economic conditions. Stakeholder sentiment, however, showed moderate divergence. Institutional stakeholders such as banks, financial institutions and private equity funds recorded a higher Future Sentiment Score of 63, reflecting growing confidence in asset quality and liquidity. Developers, in contrast, maintained a more cautious stance with a score of 58, highlighting a disciplined approach that aligns growth plans closely with demand visibility and funding prudence. This divergence points to a market where capital providers are willing to support growth, while developers remain focused on risk management and execution efficiency. In the residential segment, future sentiment improved in Q4 2025, supported by sustained demand in higher ticket size segments and careful inventory management. Although sales momentum has moderated from earlier peaks, improving financing conditions and controlled supply additions have reinforced confidence. Overall sentiment remains optimistic, characterised by stable demand rather than rapid expansion. The office sector continues to anchor overall market confidence. Leasing expectations remain strong, driven by sustained occupier demand, particularly from Global Capability Centres across major cities. Limited availability of quality Grade A space has encouraged pre-leasing and early commitments, supporting firm rental expectations. Sentiment around new office supply has also improved, indicating expectations of a stronger development pipeline even as near-term availability remains constrained. Parveen Jain, President, NAREDCO, observed that the index reflects confidence strengthening after a period of mild moderation, with residential stability and consistent office leasing forming the backbone of optimism. Taken together, the Q4 2025 findings suggest that India’s real estate sector is entering 2026 on a steadier, more balanced footing, guided by economic clarity, prudent capital deployment and demand-driven strategies across asset classes.

Expedite Justice

Updated: Mar 3, 2025

The recent submission of an 1,800-page chargesheet by the Criminal Investigation Department (CID) has thrust the Mahayuti coalition led by Chief Minister Devendra Fadnavis into a precarious position. The document names Walmik Karad, a close associate of NCP minister Dhananjay Munde, as the principal architect behind the brutal murder of Massajog Sarpanch Santosh Deshmukh. This development amplifies the urgency for the administration to expedite the judicial process to salvage its waning credibility.


Deshmukh’s abduction, torture and murder in last December was a chilling act that had rattled Maharashtra. The CID’s investigation reveals that Deshmukh’s steadfast opposition to a Rs. 2 crore extortion attempt that targeted a wind energy firm was the catalyst for his assassination. Karad, alongside his accomplice Vishnu Chate, had allegedly sought to extract this sum from the company, with Deshmukh’s resistance sealing his tragic fate.


The chargesheet meticulously details the ruthless calculus of Karad and his accomplice that led to Deshmukh’s murder. The CID’s investigation further unravels a broader conspiracy. Karad and his associates had allegedly orchestrated a campaign of terror, targeting anyone who dared to obstruct their extortion endeavours. Such brazen criminality not only highlights the perpetrators’ audacity but also exposes alarming lapses in local governance and law enforcement.


This nexus between criminal elements and political figures casts a long shadow over the Mahayuti government’s commitment to ethical governance and the rule of law. The Mahayuti coalition, which won a resounding mandate last year on the pillars of development and good governance, finds itself ensnared in a credibility crisis. The delay in apprehending Karad, coupled with the gravity of the charges against him, has led to public scepticism regarding the administration’s resolve to uphold justice. This incident, juxtaposed with other alarming events such as the Pune bus rape case, paints a troubling picture of the state’s law and order situation under the current regime.


To navigate this quagmire, the Fadnavis administration must act with alacrity and transparency. Expediting Karad’s trial is imperative, not merely as a procedural formality but as a definitive statement of the government’s intolerance towards criminality, irrespective of political affiliations. A swift and impartial judicial process would serve as a testament to the administration’s dedication to justice and could potentially restore public faith.


The government must undertake a comprehensive introspection of its internal mechanisms. Implementing robust checks and balances, fostering a culture of accountability, and ensuring that law enforcement agencies operate free from political interference are steps that cannot be deferred. The Mahayuti’s electoral mandate is a contract predicated on the promise of integrity and progress. The onus is on the Fadnavis government to demonstrate that its commitment to the rule of law supersedes political expediency. Only through decisive and transparent action can the administration hope to cleanse stains on governance and steer Maharashtra onto path of development.

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