Learn how Indiaโs real estate market is showing signs of โcautious recoveryโ in Q2 2025, driven by optimism among developers and robust demand for premium housing.
New Delhi, India โ The Indian real estate market is treading a path of โcautious recovery,โ as revealed by the latest Knight Frank-NAREDCO Real Estate Sentiment Index for Q2 2025. This positive shift in sentiment, particularly among developers and financial institutions, signals growing confidence in the sectorโs growth trajectory despite global uncertainties.
Following a year of moderation, stakeholders are increasingly looking towards Indiaโs inherent economic strengths, a supportive monetary policy, and robust demand in both premium residential and office segments.
The optimism is further fueled by easing financing conditions and a cumulative 100-basis point repo rate cut by the Reserve Bank of India in the first half of 2025, making borrowing more affordable.
Key Sentiment Indicators:
- Rising Sentiment Scores: The Current Sentiment Score rose to 56 in Q2 2025 from 54 in Q1, ending a four-quarter downward streak. The Future Sentiment Score climbed from 56 to 61.
- Developer Optimism: Developer sentiment saw a sharp increase, with their Future Sentiment Score rising from 53 to 63.
- South India Leads: Geographically, South India (Bengaluru, Hyderabad, Chennai) emerged as the most confident region with a Future Sentiment Score of 63.
- Stable Pricing Outlook: 94% of stakeholders anticipate stable or rising residential prices.
- Strengthened Sales Expectations: 52% of respondents expect residential sales to remain stable or improve over the next six months.
This report paints a hopeful picture for the Indian real estate sector, indicating that the market is adapting to new realities and is poised for sustained growth in the latter half of 2025. The focus on premium inventory and strategic market alignment between funding institutions and developers are key drivers of this positive outlook.
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