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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.

Toll Waiver to Make Impact

Updated: Nov 25, 2024

Toll Waiver

Keeping an eye on the state assembly polls, the Maharashtra cabinet took the decision of a full toll waiver for light motor vehicles at all five toll booths entering Mumbai. This decision was taken in the final cabinet meeting just a day before the elections were announced. Commuters are now travelling with small vehicles without paying tolls at Dahisar, Mulund, Vashi, Airoli, and Tin hat Naka. The toll charge was Rs 45. While announcing this decision the Chief Minister Eknath Shinde said, “There was a demand for the toll waiver due to the traffic jams at the toll booths. The toll waiver move will now save time, fuel and reduce pollution. It was a long pending demand to waive toll at Mumbai’s entry points. Many activists had approached the court demanding the toll waiver. Just like we implemented Laadki Bahin, Laadka Bhau and Laadka Kisan yojana, now the government has taken this “masterstroke” decision for the commuters”. Nevertheless, it was a relief for the commuters as they can now avoid a long queue at the toll nakas.


Significantly, this much discussed move of the state government came just ahead of the state assembly polls. More than six lakh vehicles cross Mumbai daily, of which 80 per cent are light motor vehicles. Rs 45 and Rs 75 were charged for light motor vehicles at any of the five toll booths. There are around 70,000 heavy vehicles travelling to and from Mumbai daily. Heavy vehicles are categorised by their gross vehicle weight exceeding 7,500 kg and include trucks, trailers, tankers and other goods carriers’ vehicles. The toll waiver is among the more than 150 decisions taken in a spate of state cabinet meetings within the span of a fortnight. Due to which the government’s intention behind this decision is underscored.


As per the expectation strong political reaction came to the fore after the announcement. The MNS chief Raj Thackeray, whose party workers have on many occasions vandalised toll booths, welcomed the Maharashtra government’s decision to waive the toll for light motor vehicles. “Congratulations to my Maharashtra soldiers. We fought hard for the demand for transparency in toll transactions. We were criticised for vandalising the toll booths but now every Mumbaikar can travel toll-free,” he had stated. He even hoped that the decision was not taken keeping in mind the upcoming assembly polls. The leaders of the opposition parties criticised the government’s decision saying it’s a poll gimmick.


The construction of these toll booths was initiated in 1999 to recover the costs of 55 flyovers built by the Maharashtra State Road Development Corporation under the leadership of then Minister Nitin Gadkari. The toll collection began in 2002, with activists arguing that the maintenance costs and initial investments were recovered over a decade ago. Despite this, the Maharashtra government extended the toll tax recovery period for three more years until 2027, anticipating revenue of approximately Rs 11,000 crore. The toll waiver will certainly benefit around 2.8 lakh light motor vehicles daily.

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