How Do Office Leasing and Premium Housing Shape India's Real Estate Sentiment?
Click to start listening
Synopsis
Discover how robust office leasing and premium housing are shaping the real estate landscape in India. A recent report reveals positive sentiment and future growth potential, making it a critical moment for investors and developers alike.
Key Takeaways
- Strong office leasing drives optimism.
- Demand for premium housing remains resilient.
- Current Sentiment Score increased to 59.
- Future Sentiment Score stable at 61.
- Healthy liquidity and favorable policies boost confidence.
New Delhi, Nov 15 (NationPress) The strong performance in office leasing, along with a steady demand for premium residential properties and favorable macroeconomic conditions, has bolstered India’s real estate outlook for Q3 2025, as highlighted in a recent report.
The Knight Frank-NAREDCO report indicated that the Current Sentiment Score on the Real Estate Sentiment Index increased to 59 from 56, while the Future Sentiment Score remained stable at 61.
Healthy liquidity, a reduction in inflation, and consistent policies have reinforced confidence among developers and investors, according to the report.
Among all asset classes, the office segment displayed the highest optimism, fueled by consistent demand from occupiers and well-managed new supply.
Approximately 78% of respondents expect the overall economic momentum to remain stable or enhance.
The report further noted that 78% of stakeholders anticipate stability or moderate growth in new supply, reflecting a disciplined approach by developers amid sustained absorption rates.
Moreover, 86% of respondents projected unchanged or improved funding conditions, supported by the RBI’s accommodative stance and active capital allocation towards premium housing and commercial properties.
Additionally, 95% of respondents expect office rents to stay stable or rise, driven by limited availability of Grade A space, ongoing leasing activity, and increasing pre-commitments, as stated in the report.
“Developers and investors are optimistic, buoyed by stable demand, policy continuity, and robust funding conditions. The growth in premium housing and office spaces signals a balanced and resilient outlook for the sector in the months ahead,” stated Parveen Jain, President of NAREDCO.
The South Zone led in zonal sentiment with a score of 62, spurred by strong leasing activity in Bengaluru and Hyderabad, along with demand for premium housing.
The North Zone showed continued recovery, rising to 56 due to steady office activity in NCR, while the East Zone slightly dipped to 59.
Point of View
It is evident that the current real estate landscape in India is witnessing robust growth, primarily driven by strong demand in office spaces and premium housing. The positive sentiment among stakeholders reflects a resilient market poised for continued recovery and expansion.
NationPress
15/11/2025
Frequently Asked Questions
What is the Current Sentiment Score for India's real estate?
The Current Sentiment Score has increased to 59.
What factors are contributing to the positive outlook in real estate?
Factors include robust office leasing, stable demand for premium housing, healthy liquidity, and supportive macroeconomic conditions.
Which region in India has the highest sentiment score?
The South Zone leads with a sentiment score of 62.
How many respondents expect office rents to remain stable or rise?
Approximately 95% of respondents expect office rents to remain stable or increase.
What is the Future Sentiment Score for the real estate sector?
The Future Sentiment Score remains stable at 61.
