Strong Office Leasing and Premium Housing Boost India's Real Estate Sentiment
New Delhi: Robust office leasing and resilient demand for high-ticket residential properties have bolstered India’s real estate outlook in Q3 2025, according to a report released on Saturday. The Knight Frank-NAREDCO report indicated that the Current Sentiment Score on the Real Estate Sentiment Index increased to 59 from 56, while the Future Sentiment Score remained steady at 61.
Liquidity remained healthy, inflation eased, and policy consistency reinforced confidence among developers and investors alike, the report stated. The office segment remained the most optimistic among all asset classes, supported by steady occupier demand and well-calibrated new supply.
Around 78 per cent of respondents expected overall economic momentum to remain stable or improve. Furthermore, 78 per cent of stakeholders anticipate stability or moderate growth in new supply, reflecting developers’ disciplined approach amid sustained absorption levels.
As many as 86 per cent of respondents forecasted unchanged or improved funding conditions, aided by the RBI’s accommodative stance and active capital deployment toward premium housing and commercial assets. Additionally, 95 per cent of respondents expect office rents to remain stable or rise, driven by limited Grade A availability, steady leasing momentum, and increasing pre-commitments.
“Developers and investors remain optimistic, supported by stable demand, policy continuity, and healthy funding conditions. Premium housing and office spaces drive growth, signalling a balanced, resilient outlook for the sector in the coming months,” said Parveen Jain, President, NAREDCO.
The South Zone led zonal sentiment at 62, driven by strong leasing momentum in Bengaluru and Hyderabad alongside demand for high-ticket size housing segments. The North Zone maintained its recovery, inching up to 56 on the back of steady office activity in NCR, while the East Zone eased slightly to 59.
