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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.

Mahayuti’s ‘Problem Child’ in Marathwada

Updated: Nov 12, 2024

Marathwada

There is perhaps no more volatile Assembly segment in Marathwada ahead of the November 20 polls than in Sillod, where the schisms within the ruling Mahayuti coalition are at its peak.


The Bharatiya Janata Party (BJP) has drawn a significant line with the local unit declaring that it will not campaign for its ally Abdul Sattar, a senior minister of Eknath Shinde’s ruling Shiv Sena candidate, who is seeking re-election from Sillod (in Chhatrapati Sambhajinagar district) for a fourth time.


Sattar, currently the state’s Minister for Minorities Development, has long been a polarising figure. Kamlesh Kataria, the city BJP president, accused Sattar of actively working to finish the BJP’s presence in Sillod and was allegedly threatening its workers. Kataria has accused Sattar of working against the BJP’s interests despite the two parties being allies by citing Sattar’s support for Congress candidate Kalyan Kale in the 2024 Lok Sabha elections, which led to BJP stalwart Raosaheb Danve’s defeated in nearby Jalna constituency.


Originally elected as a Congress candidate in 2009 and 2014, Sattar had joined the undivided Shiv Sena led by Uddhav Thackeray ahead of the 2019 assembly elections, where he again emerged victorious. Post the Sena split, he aligned himself with the ruling Shinde faction.


The discontent with Sattar goes beyond electoral calculations. His personal brand of politics has become a liability, both within his party and beyond. His comments and actions have drawn ire from various quarters. More recently, his involvement in a teacher eligibility test (TET) scam, in which his daughters were named, has further tarnished his reputation. The scam, which involved the inflating of exam marks and the distribution of fake certificates, has added another layer of controversy to his already volatile political persona. Earlier, his provocative language against prominent leaders, including NCP’s Supriya Sule, triggered widespread protests.


The growing resentment among BJP workers in the region has paved the way for his arch rival, Suresh Bankar, to seize the day in a bid to settle scores with the Sena leader.


Bankar, a former BJP state secretary with deep ties to the disgruntled wing of the party, has now joined the Uddhav Thackeray-led Shiv Sena (UBT) and will be facing Sattar on November 20.


Bankar, who has clashed with Sattar before, has accused him of manipulating voter rolls in Sillod, alleging that the names of supporters from outside the constituency were fraudulently registered to boost Sattar’s chances in previous elections.


For Sattar, this is merely the latest chapter in a series of controversies that have dogged his career. His combative approach to politics - often marked by inflammatory rhetoric and allegations of misconduct -has put him at odds with allies and rivals alike. While he remains a key player in the Shinde faction in this region, the BJP’s public repudiation of his candidacy signals a formidable challenge for him in the coming contest.


The BJP’s decision not to support Sattar will have far-reaching implications for the minister, given that Bankar and the local BJP unit will actively conspire to pull him down. Can the abrasive Sattar maintain his political footing on Sillod’s slippery wicket?

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