Realtors and Financial Firms Optimistic About Indian Real Estate Growth
Real estate developers and financial institutions are showing increased optimism towards the growth of India's property market for the next six months, according to a recent report by Naredco and Knight Frank. The sentiment is driven by improved economic conditions and robust demand in premium residential and office segments.
Real EstateProperty MarketNaredcoKnight FrankEconomic GrowthReal EstateJul 29, 2025
The Current Sentiment Score has risen to 56 in the April-June quarter, up from 54 in the January-March period, marking the end of a four-quarter downward trend. The Future Sentiment Score has also improved, climbing to 61 in April-June from 56 a quarter ago. A score of 50 indicates a neutral outlook, with scores above 50 reflecting positive sentiment and those below 50 suggesting a negative outlook.
The report notes that India's economic environment has become more conducive to growth and investment due to factors such as low inflation, high Goods and Services Tax (GST) collections, and a reduction in interest rates. These conditions have bolstered the confidence of stakeholders in the real estate sector.
Hari Babu, President of Naredco, commented on the index's findings, stating, “This recovery is led by steady office leasing—particularly by Global Capability Centers (GCCs) and flex operators—and strong demand for premium housing. Developers' outlook has notably strengthened amid improved liquidity and lower borrowing costs. Backed by record GST collections, robust PMI, and monetary easing, India's real estate sector appears well positioned for sustained growth through the rest of 2025.”
Shishir Baijal, Chief Managing Director of Knight Frank India, added, “The recovery in both current and future sentiment scores reflects the sector's resilience and adaptability. Despite global uncertainties, the Indian real estate market is showing signs of robustness, driven by structural economic strengths and favorable policy measures.”
The positive sentiment is particularly evident in the premium residential and office segments, where demand has remained strong. The report also highlights the role of flexible workspaces and the increasing presence of multinational corporations in driving office leasing. These factors, combined with a favorable economic environment, are expected to support the sector's growth in the coming months.
In summary, the real estate market in India is on the path to recovery, supported by a combination of economic stability, policy support, and strong demand. Stakeholders are optimistic about the future, and the sector is poised for sustained growth in the near term.
Frequently Asked Questions
What is the Real Estate Sentiment Index?
The Real Estate Sentiment Index is a quarterly report that measures the sentiment of real estate developers and financial institutions towards the growth of the property market. It is released by Naredco and Knight Frank India.
What factors are driving the optimism in the Indian real estate sector?
The optimism is driven by low inflation, high GST collections, and a reduction in interest rates. These factors have created a more conducive economic environment for growth and investment.
What is the Current Sentiment Score for the April-June quarter?
The Current Sentiment Score for the April-June quarter is 56, up from 54 in the previous quarter. This marks the end of a four-quarter downward trend.
Which segments of the real estate market are showing strong demand?
The premium residential and office segments are showing strong demand. Office leasing is particularly robust, driven by Global Capability Centers (GCCs) and flex operators.
What is the role of flexible workspaces in the real estate market?
Flexible workspaces are playing a significant role in driving office leasing. They offer a cost-effective and flexible solution for businesses, particularly startups and multinational corporations.
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