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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.

True Grit

The aftermath of Pahalgam has seen Jammu and Kashmir CM Omar Abdullah consistently rising above politics to speak for the soul of Kashmir.

Jammu and Kashmir
Jammu and Kashmir

In a region often engulfed by fogs of mistrust and communal division, it is rare to find a leader who speaks with moral clarity. It is rarer still to find one who manages to turn tragedy into an opportunity for reflection rather than recrimination. In the wake of the horrific April 22 terrorist attack in Pahalgam, in which 26 people, mostly tourists, were slaughtered at a bucolic meadow in south Kashmir, Omar Abdullah, the Chief Minister of Jammu and Kashmir, has offered something that has long eluded the state: dignity in mourning and sobriety in leadership.


The bloodletting in Baisaran, where innocent visitors were gunned down in cold blood, triggered national grief. The retaliatory fury followed in form of Operation Sindoor, which struck nine terrorist installations across Pakistan and Pakistan-Occupied Kashmir. But Islamabad, too, answered with a grim barrage of cross-border shelling, missile strikes, and drone intrusions. In Poonch district alone, 20 civilians were killed, among them children like Zoya and Ayan Khan, twin siblings whose deaths underlined the senselessness of this escalation.


At a time when war drums beat loudly and politicians sniffed opportunism in blood, Omar Abdullah chose a quieter, nobler path. Touring bombed-out villages in Poonch and Surankote, condoling with families of the dead - Hindus, Sikhs and Muslims alike - Abdullah reminded the state and the country that the costs of war are borne not in Parliament or on primetime news but in tin-roofed homes near the Line of Control.


What set Abdullah apart was his refusal to use the moment to further his own political agenda. The statehood of Jammu and Kashmir, a cause his National Conference has championed vociferously since the Centre revoked Article 370 in 2019, was pointedly kept out of his speech to the Assembly. “Is my politics so cheap?” he asked. That rare restraint deserves acknowledgment.


In a moving address to the Assembly, Abdullah read out the names and home states of each of the 26 victims of the Pahalgam massacre. From Gujarat to Arunachal Pradesh, from Kerala to Kashmir, he painted a map of national grief. And yet, he was unafraid to confront uncomfortable truths: that while the nation rightfully mourned the Pahalgam dead, few seemed to spare tears for those killed in Pakistani shelling in Kashmir. In a polity increasingly deaf to nuance, this was an echo worth hearing.


Abdullah also issued a chilling warning: while Operation Sindoor might have yielded a tactical victory, the strategic cost was allowing Pakistan to once again internationalise the Kashmir issue. He reminded the country that security is not measured in body counts but in lives left unprotected.


He also struck a powerful blow against those who justify terrorism as resistance. “Those who did this claim they did it for us,” he said. “Did we ask for this? Did we say these 26 people should be sent back in coffins in our name?” His voice was not merely one of condemnation but one of exorcism, ridding the Valley of the false prophets who kill in its name.


Perhaps the most remarkable moment came not in the Assembly chamber, but outside it. Across towns and villages, from Kathua to Kupwara, people spontaneously came out in protest against terror, against its false logic, against those who seek to make Kashmir synonymous with violence. “Not in my name,” they said. This eruption of civic conscience is fragile, but it marks something rare: a spontaneous moral uprising in a state long exhausted by fear.


Omar Abdullah may not command armies, nor be in control of the Centre’s security apparatus for Kashmir. But in refusing to politicise grief, in centering victims rather than vendettas, he has done something arguably more valuable: he has offered real leadership. In the heart of a wounded Valley, that counts for much.

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