New Delhi: Strong office leasing, consistent demand in high-end residential segments, and favorable macroeconomic conditions enhanced India’s real estate outlook in the third quarter of 2025, according to a report released on Saturday. The South Zone exhibited the highest sentiment at 62, spurred by robust leasing activity in Bengaluru and Hyderabad and a demand for high-value housing. The Knight Frank-NAREDCO report indicated that the Current Sentiment Score on the Real Estate Sentiment Index increased to 59 from 56, while the Future Sentiment Score remained stable at 61. Healthy liquidity, reduced inflation, and consistent policy measures bolstered confidence among developers and investors, the report noted.
Among various asset classes, the office sector displayed the most positive sentiment, buoyed by steady demand from occupiers and well-managed new supply. Approximately 78 percent of participants anticipated that the overall economic momentum would either stabilize or improve. Furthermore, the report highlighted that 78 percent of stakeholders expect stability or moderate growth in new supply, indicating a disciplined strategy from developers in light of sustained absorption levels. A significant 86 percent of respondents projected that funding conditions would remain unchanged or improve, supported by the RBI’s accommodating policies and active capital investment in premium housing and commercial properties.
Additionally, 95 percent of respondents foresee office rents maintaining stability or increasing, driven by limited availability of Grade A spaces, consistent leasing activity, and rising pre-commitments. “Developers and investors remain hopeful, supported by stable demand, policy consistency, and favorable funding conditions. Premium housing and office spaces are key growth drivers, indicating a balanced and resilient outlook for the sector in the upcoming months,” stated Parveen Jain, President of NAREDCO. The North Zone continued its recovery, rising to 56 due to stable office activity in NCR, while the East Zone experienced a slight decline to 59.