Mumbai, Jan 19: The stakeholder sentiment in India’s property market stabilised with a positive bias at the end of 2025, as market enters 2026 on steadier footing, a report said on Monday.
The report from Knight Frank and NAREDCO showed that the ‘Current Sentiment Score’ edged up to 60 in Q4 2025, up from 59 in Q3, while ‘the Future Sentiment Score’ was 61, unchanged from the prior quarter, both remaining in the “optimistic zone.”
“The readings underscore a market supported by improving macroeconomic visibility, easing inflation, and steady funding conditions,” the report highlighted.
Around 52 per cent respondents signalled improving economic momentum with 50 per cent reporting improved funding availability, the report said.
Despite remaining below 2023–24 peaks, resilient office demand, improving liquidity, and stable domestic economic conditions support positive expectations amid global uncertainties.
The real GDP growth of 8.2 per cent in Q2 FY2025–26 versus 5.6 per cent a year earlier was cited as a confidence driver. Easing inflation, accommodative monetary conditions, and continued public capital expenditure have strengthened visibility on growth, the report said.
“High-frequency indicators continue to point to sustained economic momentum, helping offset global uncertainty and supporting real estate fundamentals,” said Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.
Residential markets are benefiting from higher ticket size segment demand and calibrated supply, while the office sector continues to stand out on the back of robust leasing activity and firm rentals.
All regions remained optimistic in the survey with the South, East and West each scoring 62, led by strong office leasing in Bengaluru and Hyderabad as well as steady housing demand especially in higher ticket and mid-segment residential segments. The North Zone recovered to 59 in Q4 2025, reflecting stabilising sentiment after softness in earlier quarters, supported by steady office traction and ongoing infrastructure momentum, the report said.
Institutional stakeholders, including banks, financial institutions, and private equity funds, recorded a ‘Future Sentiment Score’ of 63, “reflecting rising confidence in asset quality and liquidity conditions,” the report noted.
–IANS