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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.

Traitor Talk

Operation Sindoor is not over. It has merely paused as the Indian government and the nation awaits perfidious Pakistan’s next move with bated breath. Yet, even in this hour of national crisis, India finds herself yet again fighting twin wars - one on the frontlines, the other in the pitiful trenches of domestic politics. It seems a section of Indian opposition leaders seem determined to undermine the national cause. Instead of rallying behind the tricolour and joining forces with the Modi government, Rahul Gandhi, Sanjay Raut and their ilk have chosen to parrot the narrative of the enemy. This is political opportunism of the vilest kind - juvenile, cynical and disgraceful.


True to his penchant for self-destruction, Rahul Gandhi is back to doing what he does best: peddling half-truths with the confidence of an ignoramus. By misquoting External Affairs Minister S. Jaishankar and suggesting that India informed Pakistan before Operation Sindoor began, he crossed the line from mere foolishness to active sabotage. Whether he realizes or not, Rahul Gandhi’s remarks seem to be choreographed in tandem with Pakistan’s propaganda mill.


For a man who has never held ministerial office, Gandhi has shown extraordinary arrogance in questioning one of India’s most seasoned diplomats, Dr. Jaishankar. He does not need lessons in diplomacy from a politician who cannot differentiate between foreign policy and family drama.


Meanwhile, the Congress ally in Maharashtra, the Uddhav Thackeray-led Shiv Sena (UBT) is up to a similar game. The party’s megaphone Sanjay Raut, never one to miss a chance to scream into a void, has urged the INDIA bloc to boycott all-party delegations being sent abroad. Why? Because they allegedly conceal the Centre’s “sins and crimes.” Raut’s remarks, dripping with melodrama and devoid of logic, are a masterclass in how not to conduct oneself in a time of national crisis. One wonders whether he has forgotten the difference between opposition politics and national betrayal. Fortunately, Sharad Pawar, the elder statesman of Indian politics, has not. His reminder that global matters must rise above “local-level politics” ought to have shamed Raut into silence.


But shame, clearly, is in short supply. The Trinamool Congress’s hissy fit over not being consulted about which MP to nominate for the international delegations is another sorry chapter. Their decision to withdraw Yusuf Pathan, citing “lack of consultation,” reeks of wounded ego masquerading as principle.


Did the BJP consult every party on every name? No. The inclusion of Congressmen Shashi Tharoor and Manish Tewari exposes the hollowness of that charge. If anything, it proves that the Modi government is committed to sending credible voices, not just loyalists.


The real tragedy here is not that Rahul Gandhi, Sanjay Raut or Abhishek Banerjee oppose the Modi government. That is their democratic right. The tragedy is that they oppose India’s foreign policy objectives even when the nation is reeling from a terror attack.


In normal times, such behaviour is unpatriotic. In a time of war, it is unconscionable.

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