India’s real estate sector is showing strengthened momentum in the third quarter of 2025, according to the latest Knight Frank-NAREDCO Real Estate Sentiment Index (Q3 2025: July-Sept). The current sentiment score climbed to 59 from 56 in the prior quarter, while the future sentiment score remained stable at 61, underlining continuing optimism among developers, investors and other stakeholders.
In the residential segment, new launches and sales are forecast to be on an upswing, driven by anticipated interest rate cuts, subvention schemes and incentives aimed at buyers. Developers are reported to be shifting focus towards mid- to premium-ticket offerings, with moderation of lower-ticket supply. Meanwhile, the office market remains resilient: demand for Grade A space remains solid amid constrained availability, reinforced by global capability centres, IT leasing and increased interest in flexible office formats.
Key factors underpinning this improved sentiment include stable interest rates, benign inflation and healthy domestic consumption, all contributing to a more favourable environment for real estate demand and investment. For industry bodies, the combined effect of these macro factors coupled with policy continuity and improved liquidity is supporting the outlook across asset classes.
Commenting on the findings, NAREDCO President Parveen Jain noted that the Q3 2025 index “reflects steady confidence in India’s property market”. Meanwhile, Knight Frank India Chairman & MD Shishir Baijal emphasised that the sustained optimism “reaffirms confidence in India’s economic stability and long-term growth story”.
Looking ahead, the report suggests that the real estate sector is well-positioned for steady momentum as 2026 approaches, with both residential and commercial segments expected to benefit from favourable demand-supply dynamics. For buyers, investors and developers alike, the improved sentiment signals a window of opportunity in India’s evolving property market.
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