Has India’s Property Sentiment Improved as We Enter 2026?
Synopsis
India's property market sentiment is on an upswing as we transition into 2026, with positive scores indicating optimism. Factors such as improved economic visibility, easing inflation, and robust demand are shaping this positive outlook. Read on to discover what’s driving this trend!
Key Takeaways
Current Sentiment Score rises to 60 Future Sentiment Score remains steady at 61 52% of respondents report improving economic momentum North Zone sentiment rebounds to 59 Institutional Future Sentiment Score at 63
Mumbai, Jan 19 (NationPress) The sentiment among stakeholders in India’s real estate sector has shown signs of stabilization with a positive inclination as we close out 2025, according to a report released on Monday.
The analysis from Knight Frank and NAREDCO revealed that the 'Current Sentiment Score' increased to 60 in Q4 2025, a slight rise from 59 in Q3, while the 'Future Sentiment Score' remained steady at 61, both scores indicating a state of optimism.
“These metrics highlight a market buoyed by enhanced macroeconomic clarity, diminishing inflation, and stable funding conditions,” the report emphasized.
Approximately 52% of respondents noted a boost in economic activity, with 50% indicating improved access to funding, the report stated.
While the figures are still below the peaks seen in 2023-2024, strong demand for office spaces, improved liquidity, and stable domestic economic conditions contribute to positive outlooks amidst global uncertainties.
The real GDP growth of 8.2% in Q2 FY2025-26 compared to 5.6% in the previous year was identified as a key confidence booster. The report attributed this to falling inflation, supportive monetary policies, and ongoing public capital investments, which have enhanced growth visibility.
“High-frequency metrics continue to indicate robust economic momentum, mitigating global uncertainties and bolstering real estate fundamentals,” stated Shishir Baijal, International Partner, Chairman, and Managing Director of Knight Frank India.
The residential market is currently benefiting from a surge in demand for higher-ticket properties and well-managed supply, while the office sector remains strong, driven by vigorous leasing activity and stable rental prices.
All regions reflected an optimistic outlook in the survey, with the South, East, and West each scoring 62, led by significant office leasing activity in Bengaluru and Hyderabad, as well as consistent demand in the higher-ticket and mid-segment residential categories. The North Zone rebounded to 59 in Q4 2025, indicating a recovery in sentiment after prior softness, supported by steady office demand and ongoing infrastructure developments, according to the report.
Institutional stakeholders, including banks, financial entities, and private equity firms, recorded a Future Sentiment Score of 63, “indicating growing confidence in asset quality and liquidity conditions,” the report noted.
Point of View
I believe the recent developments in India's property market reflect a broader economic resilience. Stakeholder optimism is crucial for sustained growth, especially in the face of global uncertainties. It's essential for us to monitor these trends closely, as they have a significant impact on various sectors and the overall economy.
NationPress
7 May 2026
Frequently Asked Questions
What is the Current Sentiment Score for India’s property market?
The Current Sentiment Score has increased to 60 in Q4 2025, indicating a positive bias among stakeholders.
What factors are contributing to the positive outlook in the property market?
Factors such as improving macroeconomic conditions, easing inflation, and strong demand in both residential and office sectors are contributing to the positive sentiment.
How does the Future Sentiment Score compare to previous quarters?
The Future Sentiment Score remains unchanged at 61, indicating consistent optimism for the upcoming quarters.
Which regions in India are showing the most optimism?
The South, East, and West regions each scored 62, driven by strong office leasing in cities like Bengaluru and Hyderabad.
What does the report say about institutional stakeholders' confidence?
Institutional stakeholders recorded a Future Sentiment Score of 63, reflecting increased confidence in asset quality and liquidity.
