India’s real estate sector is navigating a phase of cautious optimism as it contends with global economic uncertainties. The Knight Frank-NAREDCO Real Estate Sentiment Index for Q1 2025 indicates a slight decline in stakeholder confidence, with the current sentiment score dipping to 54 from 59 in Q4 2024. Despite this, the sector remains in the optimistic zone, reflecting resilience amid external challenges .
Commercial real estate continues to demonstrate strength, bolstered by sustained demand from Global Capability Centres and tech-enabled enterprises. Approximately 82% of stakeholders anticipate leasing activity to remain stable or increase, with 91% expecting rents to hold steady or rise. This underscores the sector’s adaptability and robust demand in the office space segment .
In the residential market, while 93% of respondents foresee stable or rising prices, sentiment regarding new launches has moderated. Only 67% expect stability or growth in new project introductions, and just 50% anticipate improvement or stability in residential sales, a notable decrease from 88% in the same quarter last year .
The Reserve Bank of India’s recent repo rate cuts have been welcomed by the industry, aiming to enhance liquidity and stimulate housing demand. Developers are adopting a more strategic approach, focusing on high-ticket projects and recalibrating supply in the mid and affordable segments to align with evolving market dynamics .
Overall, while global uncertainties pose challenges, India’s real estate sector exhibits resilience and a strategic recalibration, positioning itself for sustainable growth in the evolving economic landscape.
