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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.

Underdogs to Overlords

Kapil Dev’s audacious triumph at Lord’s in 1983 transformed India from an afterthought into the game’s undisputed superpower.

On June 25, 1983, cricket’s global power balance shifted irreversibly. That day, a team not taken seriously by pundits or bookies toppled the indomitable West Indies at Lord’s, lifting the Prudential World Cup for the first time. The men who achieved it - Kapil Dev’s ‘devils’ - did more than just win a trophy. They rewired the sporting psyche of a nation, inspiring a transformation whose reverberations continue to echo through the game’s corridors of power.


As a cricketer and a devoted reader of the game’s literature, the first autobiography I ever read remains etched in memory: Chappelli, by the abrasive and articulate Ian Chappell. Beyond the swagger and flair that mirrored his playing style, what jarred me even as a boy was his thinly veiled disdain for India. Recounting his 1969 tour under Bill Lawry, Chappell mocked the facilities, the infrastructure and the socialist morass he perceived in Indian society. That he was tipped to become captain perhaps explains why he tolerated what he saw as a ‘torture tour’ to a country then considered irrelevant to world cricket.


Fast forward four decades. In 2024, the Board of Control for Cricket in India (BCCI) boasted a net worth of Rs. 20,686 crore - more than 30 times that of Cricket Australia. The once-dismissed periphery is now the epicentre. The International Cricket Council (ICC), once the fiefdom of the SENA countries (South Africa, England, New Zealand, Australia), now often appears beholden to India. Former Pakistan Cricket Board chairman Najam Sethi bluntly declared that the ICC is now “subservient” to Indian interests.


This revolution did not begin at Lord’s, but at Tunbridge Wells a week earlier. On June 18, India - rank outsiders - faced Zimbabwe in a must-win game. Their prior World Cup performances had been forgettable, with just one win (against East Africa) across the 1975 and 1979 editions. The match against Zimbabwe began disastrously: 17 for 5, teetering on the brink of elimination. Kapil Dev then played an innings that rewrote India’s cricketing destiny, hammering an unbeaten 175 off 138 balls, laced with six towering sixes and sixteen authoritative fours. Sunil Gavaskar later called it the greatest one-day innings he had ever seen, with some shots clearing not just the boundary, but the stadium itself.


That innings instilled belief. India defeated a formidable England side in the semi-final, setting up a daunting final against Clive Lloyd’s West Indies, chasing its third consecutive title. The odds were 66 to 1 against India. Batting first, India managed a modest 183. With legends like Vivian Richards, Gordon Greenidge, and Lloyd in their ranks, most expected the West Indies to chase it down in 30 overs.


But Indian bowlers had other plans. Balwinder Sandhu clean-bowled Greenidge with a delivery that jagged in sharply. Haynes followed. Then came the moment that swung the momentum: a sprinting Kapil Dev took a backward catch off Richards that has since become part of cricketing folklore. With Richards gone and Lloyd, Gomes and Bacchus falling cheaply, India sensed blood. Mohinder Amarnath cleaned up the tail with three wickets, as the West Indies were bundled out for 140. India had won by 43 runs. Amarnath, for his all-round heroics, was rightly named man of the match.


Kapil Dev lifting the World Cup has become an enduring image of national pride, an emblem of possibility for a country then grappling with economic and political malaise. The victory sparked a cricketing renaissance.


First, it fuelled self-belief. India now knew it could beat the best. Second, the televised triumph ignited public imagination. Cricket had been popular, but it now became religion. Third, it democratised the sport, expanding its reach beyond elite urban centres to small towns and rural outposts. Fourth, it sowed the seeds for the professionalisation and commercialisation of the game. And finally, it elevated India’s performance. With stars like Dhoni, Gill, and Pant hailing from provincial backgrounds, the bench strength today is unmatched. India consistently ranks among the top two in all formats.


Perhaps the biggest transformation has been economic. Cricket is now a multibillion-dollar industry in India. The Indian Premier League is the most lucrative and widely watched T20 league in the world. Cricketers command endorsement deals rivalling those of Bollywood stars, and broadcasting rights draw fierce global bidding. No cricketing nation dares ignore India’s clout.


On that June afternoon in 1983, Kapil Dev and his men sowed a seed that would grow into an empire. Today, India’s cricketing juggernaut rolls on - but it does so in the long shadow of that audacious coup at Lord’s.


(The author is a political commentator and a global affairs observer. Views personal.)

1 Comment


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