India's Real Estate Market Gains Momentum: Experts Predict Strong Growth Ahead
India’s real estate market is experiencing a renewed wave of confidence, as indicated by the latest NAREDCO–Knight Frank Sentiment Index. Stable GDP growth, consistent government support, and improving affordability are driving the optimism.
Real Estate MarketNaredcoKnight FrankGdp GrowthHousing AffordabilityReal Estate NewsSep 09, 2025
The boost reflects the strength of the country’s macroeconomic fundamentals, the steady improvement in housing affordability, and the visible surge in demand across both residential and commercial spaces.
There is a strong macroeconomic base beneath the growing optimism. Stable GDP growth and stable interest rates have created a predictable environment for buyers and investors, and consistent government policy support has increased trust in the sector's long-term stability.
The residential sector is also experiencing a visible uptick, with premium and luxury homes driving the market in large metropolitan areas. Due to a powerful combination of corporate presence, convenient access, and growing lifestyle infrastructure, Gurugram, Noida, and Delhi have become important hubs. According to the Savills India Delhi-NCR Residential Market Watch report, the market value of luxury floors in the capital grew by an average of 9 per cent annually in the first quarter of 2025.
Further on the commercial front, leasing activity touched 5.7 million sq ft across the top seven cities, a 69 per cent jump over the same period last year, with Delhi-NCR leading the charge in Q2, as per JLL’s report. Much of this growth stemmed from rising demand in the F&B sector, which accounted for 22 per cent of local leasing.
According to Ashok Singh Jaunapuria, MD and CEO, SS Group, the renewed optimism is clearly visible on the ground in Gurugram, where infrastructure upgrades, GCC’s presence, and lifestyle evolution are creating a self-sustaining growth cycle.
“We’ve observed a tangible shift in buyer behaviour where families are prioritising community living, security, and long-term value over short-term price considerations. This sentiment expedites the decision-making process, preparing end-users to invest in premium properties. Hence, with projects aligning to evolving lifestyle needs and backed by a strong economy, Gurugram is not just riding the sentiment wave but shaping the very blueprint for NCR’s next decade of real estate growth,” he said.
Vishal Sabharwal, Head Sales, Orris Group, feels that the sentiment index’s positive swing isn’t just statistical, it mirrors the renewed confidence we see among homebuyers, investors, and corporates across NCR.
“In housing, end-users are upgrading faster, while in commercial real estate, demand from new-age businesses and flexible workspace operators is driving leasing activity. Importantly, the market today is far more structured, transparent, and quality-focused than a decade ago, and with policy stability, infrastructure delivery, and a clear appetite for both living and working spaces, we foresee NCR positioned to remain one of India’s most dynamic markets in the years ahead,” Sabharwal said.
The renewed sentiment is finding strong expression in Gurugram, particularly along the Dwarka Expressway, which has emerged as a catalyst for the city’s next phase of growth, said Vishesh Rawat, vice-president and head of marketing, sales and CRM at M2K Group.
“Sector 104, in particular, is witnessing a surge in interest as buyers recognise its unique blend of connectivity, premium living, and future-ready infrastructure. With the expressway linking Gurugram seamlessly to Delhi and the airport, the micro-market has gained tremendous traction from both end-users and investors, reaffirming Gurugram’s position at the forefront of NCR’s real estate revival,” he concluded.
Frequently Asked Questions
What is the NAREDCO–Knight Frank Sentiment Index?
The NAREDCO–Knight Frank Sentiment Index is a quarterly survey that measures the current and future sentiment of developers, investors, and financial institutions in India’s real estate market.
What factors are contributing to the renewed confidence in India’s real estate market?
Stable GDP growth, consistent government policy support, stable interest rates, and improving housing affordability are the key factors driving the renewed confidence.
Which cities are experiencing significant growth in the real estate sector?
Gurugram, Noida, and Delhi are experiencing significant growth, particularly in the premium and luxury housing segments.
How has the commercial real estate market performed in the recent quarter?
Leasing activity in the commercial real estate market has increased by 69 per cent in the top seven cities, with Delhi-NCR leading the charge.
What role is the Dwarka Expressway playing in Gurugram’s real estate growth?
The Dwarka Expressway is acting as a catalyst for Gurugram’s next phase of growth, particularly in Sector 104, by providing better connectivity to Delhi and the airport.
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