Real Estate Sector Shows Steady Growth as Developers Adjust Supply and Buyers Remain Active
India’s real estate sector is displaying a sense of steadiness, with developers, investors, and occupiers all pointing to a year defined by resilient demand, stable financing conditions, and disciplined supply across major cities.
Even as external economic pressures persist, sentiment on the ground has stayed constructive, supported by sustained activity in both premium housing and office leasing.
A stable and relatively lower interest-rate environment, along with easing inflation, has further strengthened confidence, keeping liquidity supportive and funding channels consistent, according to a Knight Frank-NAREDCO assessment.
According to market participants, the past few quarters have revealed a clear pattern in which buyers and occupiers continue to transact in segments that matter, while developers have recalibrated launches to avoid excess supply, particularly in lower-ticket housing.
The sustained optimism underscores the sector’s resilience and adaptability. Both current and future sentiment scores remain comfortably in the positive zone, reaffirming confidence in India’s economic stability and long-term growth story. Demand in the premium residential segment remains healthy, while the office market continues to demonstrate structural depth with strong leasing pipelines, explained Shishir Baijal, CMD, Knight Frank India.
The current sentiment score improved to 59 from 56 last quarter, the highest reading recorded this year. The future sentiment score stayed unchanged at 61, indicating that stakeholders expect the momentum to hold in the coming months, as shown by the Knight Frank-NAREDCO study.
Among key markets, the southern region stayed the most optimistic, and the north continued its recovery as regional trends remained largely stable. The south posted the highest optimism driven by strong office activity in Bengaluru and Hyderabad, alongside demand for high-ticket homes.
Developers and investors remain optimistic, supported by stable demand, policy continuity, and healthy funding conditions. Premium housing and office spaces drive growth, signaling a balanced, resilient outlook for the sector in the coming months, stated Parveen Jain, President, NAREDCO.
The north region improved, supported by steady leasing in NCR. The eastern region moderated amid lower residential launches this year, while the western region eased a bit, with Mumbai and Pune office absorption balancing a softer residential pace.
While developers showed caution amid elevated input costs and slower movement in mid to low-income housing, non-developers, including banks, financial institutions, and private equity funds, maintained their outlook, signaling confidence backed by liquidity and asset quality.
Premium housing and office leasing led optimism in the residential segment, with 71% of survey respondents expecting launches to remain stable or rise, while 74% foresee sales staying steady or improving, a sharp jump from 52% in the second quarter.
Price expectations remain firm, with 92% anticipating stability or an increase. NCR, Bengaluru, and Hyderabad registered 13-19% on-year price gains in the September quarter.
The office segment remained the most optimistic, with 78% expecting stable or rising new supply and 95% anticipating rents to remain steady or increase amid tight Grade A availability and rising pre-commitments.
