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India's Real Estate Sector Rides High on Optimism and Resilience
16 Nov
Summary
- Sentiment index shows improving confidence among stakeholders
- Robust demand and limited supply drive office rent growth
- Residential sales expected to improve with buyer-focused incentives
India's real estate sector is poised for robust growth, as the Q3 2025 sentiment index report by Knight Frank-Naredco indicates improving confidence among stakeholders. The Current Sentiment Score rose to 59, up from 56 in the previous quarter, while the Future Sentiment Score remained stable at 61, maintaining its position in the optimistic zone.
The office segment is expected to be supported by steady occupier demand and strong supply, with rents holding or increasing amid limited Grade A space. The sector remains buoyed by GCC expansion, IT-led leasing, and rising flex-space demand. On the residential front, new launches are expected to remain stable or increase, as developers prioritize higher-ticket projects and temper lower-ticket supply. Residential sales are likely to improve, supported by rate cuts, subvention schemes, and buyer-focused incentives.
Despite global headwinds, structural fundamentals, steady policy support, and consistent demand from occupiers and end-users continue to drive optimism in India's real estate market. As the country approaches 2026, the sector is expected to maintain steady momentum across asset classes.
