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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.

Markets decline in early trade tracking weak Asian peers

  • PTI
  • Apr 9, 2025
  • 2 min read


MUMBAI: Benchmark equity indices slumped in early trade on Wednesday after a day's breather in line with losses in Asian markets amid escalating trade tensions as domestic investors eye the Reserve Bank's monetary policy decision to be announced later in the day.


The 30-share BSE benchmark Sensex dropped 554.02 points to 73,673.06 in early trade.


The NSE Nifty declined 178.85 points to 22,357.


"With a whopping 104 per cent tariffs on China likely to kick in today, there is blood on the streets. Uncertainty reigns supreme. How global trade and the global economy evolve from this chaos remains to be seen," V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.


Vijayakumar further said two things are clear: India will be one of the large economies least impacted by this Trump shake-out.


"Our domestic consumption segments are resilient. The 25 bps cut in policy rates expected in the monetary policy announcement today can give a further monetary stimulus to the economy. The crash in crude is a big positive for the Indian economy. Of course, a global recession, or worse, stagflation, can do a lot of damage," he added. From the Sensex firms, Tata Steel, Tech Mahindra, Infosys, HCL Tech, Tata Consultancy Services, Sun Pharma, Larsen & Toubro and NTPC were among the biggest laggards.

Power Grid, Nestle, Mahindra & Mahindra and Hindustan Unilever were among the gainers.


In Asian markets, Tokyo's Nikkei 225 index, South Korea's Kospi and Hong Kong's Hang Seng were trading lower while Shanghai SSE Composite index quoted marginally higher.


Tokyo's Nikkei 225 index dropped 3.63 per cent.


US markets ended significantly lower on Tuesday.


Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,994.24 crore on Tuesday, according to exchange data.


"Markets brace for heightened volatility amid the US imposing 104 per cent tariffs on Chinese imports, effective April 9, in response to Beijing's 34 per cent duties on US goods," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.


All eyes are on RBI monetary policy announcement with expectations of a 25 bps rate cut, he added.


Global oil benchmark Brent crude dropped 2.90 per cent to USD 61 a barrel.

After Monday's drubbing, the BSE benchmark jumped 1,089.18 points or 1.49 per cent to settle at 74,227.08 on Tuesday.


The Nifty surged 374.25 points or 1.69 per cent to 22,535.85.

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