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Buyers Gain Leverage as India's Housing Market Cools After Scorching 2-Year Run
17 Nov
Summary
- Mid-income launches slow, prices stabilize, giving buyers more negotiating power
- Office stability boosts homebuyer sentiment in key metros
- Funding conditions remain steady, allowing buyers to plan mortgages
As of November 17, 2025, India's housing market is showing signs of cooling after a two-year period of intense price appreciation. According to the Knight Frank NAREDCO Sentiment Index for Q3 2025, current sentiment has risen to 59 from 56, while future sentiment has held steady at 61.
The report indicates that developers have concentrated new launches in premium projects and slowed mid-income supply, signaling a shift towards a more balanced market. This change has given ordinary homebuyers more negotiating power after an extended period of sharp price increases.
The moderation in price expectations is also evident, with 92% of stakeholders expecting prices to stay stable or rise, down from 96% a year earlier. This suggests the price surge of 2023 and 2024 has started to ease as buyers resist higher valuations in non-premium categories.
Stable commercial markets have also supported homebuyer sentiment in key metros. About 95% of respondents expect office rents to stay stable or rise, and 78% expect new office supply to remain steady or slightly increase. Strong leasing activity in Bengaluru, Hyderabad, and Pune has helped maintain confidence for urban homebuyers.
Funding conditions have remained steady, allowing buyers to plan mortgages without sudden rate shocks. Developers have also signaled caution, with their future sentiment reading moving to 59 from 63, indicating a focus on projects with strong presales and a shift away from speculative expansion.
