Office leasing, premium housing drive real estate sentiment in India

New Delhi, Nov 15
Robust office leasing, resilient residential demand in high-ticket segments, and supportive macro conditions strengthened India’s real estate outlook in Q3 2025, a report said on Saturday.

The Knight Frank-NAREDCO report showed that the Current Sentiment Score on Real Estate Sentiment Index rose to 59 from 56, while the Future Sentiment Score was steady at 61.

Liquidity remained healthy, inflation eased, and policy consistency reinforced confidence among developers and investors alike, the report said.

The office segment remained the most optimistic among all asset classes, supported by steady occupier demand and well-calibrated new supply.

Around 78 per cent of respondents expected overall economic momentum to remain stable or improve.

Further, the report said that 78 per cent of stakeholders anticipate stability or moderate growth in new supply, reflecting developers’ disciplined approach amid sustained absorption levels.

As many as 86 per cent of respondents forecasted unchanged or improved funding conditions, aided by the RBI’s accommodative stance and active capital deployment toward premium housing and commercial assets.

Additionally, 95 per cent of respondents expect office rents to remain stable or rise, driven by limited Grade A availability, steady leasing momentum, and increasing pre-commitments, the report said.

“Developers and investors remain optimistic, supported by stable demand, policy continuity, and healthy funding conditions. Premium housing and office spaces drive growth, signalling a balanced, resilient outlook for the sector in the coming months,” said Parveen Jain, President, NAREDCO.

The South Zone led zonal sentiment at 62, driven by strong leasing momentum in Bengaluru and Hyderabad alongside demand for high ticket size housing segments.

The North Zone maintained its recovery, inching up to 56 on the back of steady office activity in NCR, while the East Zone eased slightly to 59.