India’s real estate sector is witnessing a powerful revival, propelled by aggressive global monetary easing and focused domestic policy support. After three key rate reductions this year—cumulatively slashing the repo rate by 100 basis points—the Reserve Bank of India (RBI) lowered it further to 5.5%, and eased the Cash Reserve Ratio by 100 basis points to 3% in June, aiming to unlock fresh liquidity and bolster credit growth.
This monetary stimulus is reinvigorating buyer sentiment, especially among first-time homeowners and mid-income groups, by making home loans significantly more affordable. Developers across the country—from Tier I to Tier II cities—are buoyed by renewed confidence and easier financing, enabling faster project launches, particularly in premium residential and commercial segments.
Supporting this upswing, the Q2 2025 Knight Frank–NAREDCO Sentiment Index signals rising optimism, driven by improved liquidity, stable macroeconomic conditions, and sustained demand in both housing and office markets. As global interest rate trends converge, Indian real estate stands poised for a sustained growth trajectory, with affordability, policy tailwinds, and developer enthusiasm fueling momentum into FY 26.