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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.

Quota Quagmire

Updated: Oct 22, 2024

The Maharashtra government’s decision to accept the second and third reports of the Justice Sandeep Shinde committee marks a critical moment in the state’s efforts to walk the tightrope of the Maratha reservation in an election year. The committee, established to determine the protocol for issuing Kunbi-Maratha and Maratha-Kunbi certificates based on historical records, aims to include sections of the Maratha community under the Other Backward Classes (OBC) category. The Kunbis, traditionally an agrarian group, are already classified as OBCs in Maharashtra. The challenge for the Eknath Shinde-led Mahayuti coalition has been (and will be) in expanding this categorization to appease the Maratha community without alienating the OBC groups ahead of the crucial Assembly election.

Maratha quota activist Manoj Jarange-Patil’s six hunger strikes since last September turned the spotlight on the Maratha quota issue. With the cabinet’s acceptance of the Shinde committee’s recommendations, the inclusion of Marathas in the OBC category should now bring closure to the year-long agitation. It is to be hoped that Jarange-Patil will be finally placated and stop demanding further entitlements which can only prolong the unrest and deepen the state’s caste divisions.

The repeated protests have not only tested the government’s patience but also inflicted considerable hardship on ordinary citizens, especially in the Marathwada region. The strikes and demonstrations, which have often turned violent, have disrupted daily life across Maharashtra, aggravating caste tensions and threatening administrative stability. While it is easy for rabble rousers like Jarange-Patil to rally crowds and ignite passions, it is the ordinary people who ultimately pay the price for any protracted unrest.

Worse still, these protests have led to deep caste schisms in Maharashtra’s Marathwada region where historical tensions between caste groups have long festered. The Maratha quota issue, and the OBC backlash, have seen some incendiary rhetoric which have literally translated into incendiary action.

The Maratha community’s aspirations for inclusion and economic upliftment are understandable, but these goals should not be achieved at the expense of social harmony. Figures like Jarange Patil are skilled at turning such issues into high-stakes, emotive dramas, capitalizing on popular anxieties of a community. His appeal to Marathas and farmers to gather en masse for the Dussehra upcoming rally is yet another instance of his ability to galvanize support through a show of strength, even when the real issues have largely been addressed by a government that has understandably bowed to electoral pressure. The Mahayuti, already smarting from a severe drubbing in the Lok Sabha election, has walked gingerly in handling the Maratha quota issue. Now, Maharashtra’s diverse social fabric cannot withstand endless agitations that pit caste against caste, each vying for a larger slice of the pie.

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