Knight Frank–NAREDCO Index Signals Cautious Real Estate Outlook
Real Estate

Knight Frank–NAREDCO Index Signals Cautious Real Estate Outlook

India’s real estate sector entered a phase of cautious recalibration in Q1 2026, with the Knight Frank–NAREDCO Real Estate Sentiment Index reflecting moderation in stakeholder confidence amid rising global uncertainties.

The Current Sentiment Score declined sharply to 49 in Q1 2026 from 60 in Q4 2025, slipping into pessimistic territory, while the Future Sentiment Score moderated to a neutral 50 from 61 in the previous quarter. According to the report, higher crude oil prices, inflationary pressures, tighter financial conditions and geopolitical uncertainties weighed on sentiment across the sector.

The residential market showed signs of consolidation after a prolonged growth cycle. Around 52 per cent of respondents expect housing sales to decline in the near term, while 45 per cent foresee lower project launches. However, residential prices are expected to remain firm, with 73 per cent of stakeholders anticipating prices to either rise or stay stable due to higher construction, labour and financing costs.

The office segment remained resilient, supported by strong leasing demand and limited Grade A supply. About 41 per cent of respondents expect office leasing activity to improve, while 81 per cent foresee rentals remaining stable or increasing, driven largely by demand from Global Capability Centres.

Commenting on the findings, Shishir Baijal said the moderation in sentiment reflects growing global uncertainties, while India’s core economic fundamentals remain robust.

Praveen Jain added that the softening in residential sentiment represents a short-term recalibration after a sustained growth phase, while commercial real estate continues to demonstrate strength through stable leasing and rental trends.

India’s real estate sector entered a phase of cautious recalibration in Q1 2026, with the Knight Frank–NAREDCO Real Estate Sentiment Index reflecting moderation in stakeholder confidence amid rising global uncertainties.The Current Sentiment Score declined sharply to 49 in Q1 2026 from 60 in Q4 2025, slipping into pessimistic territory, while the Future Sentiment Score moderated to a neutral 50 from 61 in the previous quarter. According to the report, higher crude oil prices, inflationary pressures, tighter financial conditions and geopolitical uncertainties weighed on sentiment across the sector.The residential market showed signs of consolidation after a prolonged growth cycle. Around 52 per cent of respondents expect housing sales to decline in the near term, while 45 per cent foresee lower project launches. However, residential prices are expected to remain firm, with 73 per cent of stakeholders anticipating prices to either rise or stay stable due to higher construction, labour and financing costs.The office segment remained resilient, supported by strong leasing demand and limited Grade A supply. About 41 per cent of respondents expect office leasing activity to improve, while 81 per cent foresee rentals remaining stable or increasing, driven largely by demand from Global Capability Centres.Commenting on the findings, Shishir Baijal said the moderation in sentiment reflects growing global uncertainties, while India’s core economic fundamentals remain robust.Praveen Jain added that the softening in residential sentiment represents a short-term recalibration after a sustained growth phase, while commercial real estate continues to demonstrate strength through stable leasing and rental trends.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement