India’s real estate sector continued its upward trajectory in Q3 2025, driven by a surge in luxury housing demand and robust office leasing activity, particularly in Bengaluru and Hyderabad. The Knight Frank–NAREDCO Real Estate Sentiment Index reported a rise in the Current Sentiment Score to 59, up from 56 in the previous quarter, while the Future Sentiment Score remained strong at 61, a clear indication of sustained confidence across the industry.
The market’s positive outlook is supported by macro-economic stability: steady interest rates, easing inflation and improved liquidity conditions. These fundamentals have significantly boosted both developer and investor sentiment, encouraging stronger participation across residential and commercial segments.
In the commercial real-estate space, office leasing continues to show exceptional strength. Major metros, especially Bengaluru and Hyderabad, are witnessing high absorption of premium office spaces, backed by technology, consulting and GCC expansions.
On the residential front, luxury housing remains the standout performer, with year-on-year price growth ranging between 13% and 19% in top cities such as Bengaluru, Hyderabad and NCR. Developers are strategically shifting their focus toward premium and luxury launches, as mid-segment and affordable housing see moderated supply.
The South Zone emerged as the strongest regional performer with a sentiment score of 62, reflecting high demand and consistent leasing momentum. Furthermore, 71% of stakeholders expect new launches to either remain stable or increase, while 92% foresee prices staying stable or rising.
With strong demand drivers and favourable economic conditions, India’s real-estate outlook remains optimistic heading into 2025–26.
