The latest Knight Frank–NAREDCO Real Estate Sentiment Index (Q3 2025) reports a sustained positive outlook across India’s property sector. The Current Sentiment Score rose to 59 from 56 in the previous quarter, while the Future Sentiment Score remained steady at 61, both firmly in the optimistic zone.The improvement reflects strong office leasing activity, resilient demand for premium residential units and supportive macroeconomic conditions. Stable interest rates, easing inflation and healthy liquidity have strengthened confidence among developers, investors and financial institutions. The Current Sentiment Score of 59 is the highest recorded in 2025 so far.Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “The sustained optimism reflected in the Q3 Sentiment Index 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. Stable interest rates, easing inflation, and improved liquidity have reinforced overall sentiment. As we approach 2026, we expect the market to maintain steady momentum across asset classes.”Sentiment remained stable across regions. The South Zone led with a score of 62, backed by strong leasing in Bengaluru and Hyderabad. The North Zone rose to 56, driven by steady activity in NCR. The East Zone moderated to 59 due to slower residential launches, while the West eased from 61 to 59 owing to balanced office and residential performance.Developer sentiment softened from 63 to 59 as firms navigated higher input costs and slower mid- and low-income housing traction. Non-developers—banks, NBFCs, and private equity funds—remained optimistic, holding the Future Sentiment Score at 61.Residential confidence strengthened, with 71 per cent of respondents expecting new launches to remain stable or increase. Demand for high-ticket homes continues to outperform, supported by rate cuts, subvention schemes and improved affordability. Nearly 92 per cent of respondents expect prices to remain stable or rise, with NCR, Bengaluru and Hyderabad recording year-on-year price growth of 13–19 per cent in Q3 2025.The office segment remained the most buoyant, driven by consistent occupier demand, GCC expansion and growing flex-space take-up. Respondents anticipate stable or rising leasing and rents, with 95 per cent expecting rental stability or growth due to limited Grade A supply and strong pre-commitments.Macro and liquidity indicators also remain favourable. Around 78 per cent of respondents expect economic momentum to remain stable or improve, while 86 per cent foresee steady or better funding conditions, supported by the RBI’s accommodative stance.Parveen Jain, President, NAREDCO, further added, “The Knight Frank NAREDCO Real Estate Sentiment Index – Q3 2025 reflects steady confidence in India’s property market. 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.”Overall, the Knight Frank–NAREDCO Real Estate Sentiment Index Q3 2025 reaffirms that India’s real estate market continues on a stable growth trajectory, backed by sound fundamentals and sustained domestic demand.