Indian Real Estate Q3, 2025 experience Bullish Market Sentiment

The Indian real estate market sees an uptick in demand for premium residential properties in Q3, 2025. The market also rejoices in the soaring demand for office spaces in the tenure. According to the NAREDCO Real Estate Sentiment Index - Knight Frank, South Indian cities lead the growth momentum on a *YoY basis.

The report published on November 15, 2025, exhibits several factors collectively responsible for a positive business ecosystem. It includes steadiness in rate cuts and lowering inflation as prominent reasons. In the last quarter of the 2025 calendar year, the rising demand sentiment rose to 59 from 56. However, the future sentiment stands at a 61-score mark.

The market experts and developers remain positive about the development and look forward to for booming period. Along with the luxury residential segment, demand for office spaces is also on the rise. The experts look at this rise as a reflection of sturdy infrastructure and projects in the pipeline.

With the rise in sentiment, investors' confidence in non-liquid assets resonates with bright days ahead for the property sector. Also, the future sentiment will flourish with better consumption of immovable assets.

The 46th edition of Knight-Frank and NAREDCO shows unanimous efforts from developers, agents and every layer of the Indian real estate business.

(Courtesy – Knight Frank)

What is Real Estate Sentiment Index?

The real estate sentiment index is a quarterly survey based on observations and expectations from prominent stakeholders. Also, it includes opinions from veteran developers and patrons in a pivotal role in the property business.

The survey incorporates questioning about the economy, project launches, sales volume, leasing volume, price appreciation, and fund availability. All respective respondents have to choose from a weightage, including, 100, 75, 50, 25 and 0 score.

The calculation of the weighted average score of response percentage in every category determines the index. Therefore, a score of 50 is seen as neutral, > 50 is marked as positive, and 50 < is seen as negative. The report is sectioned into two, where respondents have to answer based on:

• Section 1 – current scenario in comparison to last six months
• Section 2 – future scenario in comparison to upcoming six months

Shishir Baijal, Chairman and Managing Director, said, “The sustained optimism reflected in the Q3, Sentiment Index underscores the sector’s resilience and adaptability. Both current and future sentiments scores remain comfortably in the positive zone, reaffirming confidence in India’s economic stability and long-term growth story. Demand in the premium residential segment remains healthy, while the office market continues to demonstrate structural depth with strong leasing pipelines. Stable interest rates, easing inflation, and improved liquidity have reinforced overall sentiments. As we approach 2026, we expect the market to maintain steady momentum across asset classes.”

South Indian Cities remain Confident as Demand for Housing Soars

In Q3, 2025, the zonal sentiment trends show stability in the overall Indian real estate market. Southern India is the choicest destination for investors and buyers. The infrastructure and other amenities make Bangalore and Hyderabad preferred for luxury residences. Thus, making Southern India score 62, despite a few flaws.

The North region, however, tries to match the pace of 2024, as the zone marches towards a 56 score. Following the trend is the East region with 59 marks, addressing average project launches. However, the west zone, including Mumbai and Pune, witnessed a dip from 61 to 59 in the residential sector.

New Project launches maintain Market Stability; Developers focus on Luxury Housing

Steering cautiously in the residential sector, the Q3 2025 market exhibits equilibrium between demand and supply. More than 70% feel that new project launches will keep the positive momentum steady. The primary reason behind the prediction is developers’ inclination towards large immovable assets.

Thus, the market sentiment remains positive with new launches, steady prices, and interest rates boost investment and buying confidence in Indian real estate.

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*YoY – Year on Year comparison based on percentage altercation which reflects growth and dip. The annual metric measurement is based on the previous and current value, and the actual difference is sought by the YoY formula i.e. Current Year Value/Previous Year Value -1.