The stakeholder sentiment in India’s property market stabilized with a positive bias at the end of 2025, as the market enters 2026 on a steadier footing. According to a report by Knight Frank and NAREDCO, the ‘Current Sentiment Score’ rose to 60 in Q4 2025 from 59 in Q3, while the ‘Future Sentiment Score’ remained at 61, both staying in the “optimistic zone.”
The report highlighted that the market is supported by improving macroeconomic visibility, easing inflation, and steady funding conditions. Around 52% of respondents indicated improving economic momentum, with 50% reporting enhanced funding availability.
Despite being below the peaks of 2023–24, resilient office demand, improving liquidity, and stable domestic economic conditions are fostering positive expectations amid global uncertainties. The report cited a real GDP growth of 8.2% in Q2 FY2025–26, compared to 5.6% a year earlier, as a confidence booster, along with easing inflation and accommodative monetary conditions.
“High-frequency indicators continue to show sustained economic momentum, offsetting global uncertainty and supporting real estate fundamentals,” said Shishir Baijal, International Partner, Chairman, and Managing Director of Knight Frank India. Residential markets are benefiting from higher ticket size segment demand and calibrated supply, while the office sector is thriving due to robust leasing activity and firm rentals.
All regions surveyed remained optimistic, with the South, East, and West each scoring 62, driven by strong office leasing in Bengaluru and Hyderabad, as well as steady housing demand, particularly in higher ticket and mid-segment residential segments. The North Zone recovered to 59 in Q4 2025, reflecting stabilizing sentiment after earlier softness, supported by steady office traction and ongoing infrastructure momentum.
Institutional stakeholders, including banks, financial institutions, and private equity funds, recorded a ‘Future Sentiment Score’ of 63, indicating increasing confidence in asset quality and liquidity conditions.
