Saumya | November 16, 2025
Kolkata: India’s real estate sector is showing signs of steady growth and optimism, according to the NAREDCO Real Estate Sentiment Index for Q3 2025. The Current Sentiment Score rose to 59 from 56 in the previous quarter, while the Future Sentiment Score stands at 61, reflecting confidence in the months ahead among developers, investors, and other stakeholders.
Despite ongoing global economic uncertainties, the report suggests that India’s property market remains resilient. Strong residential demand, active office leasing, and supportive government policies have helped investors feel more secure in their decisions.
Regional Highlights
Southern Region: The southern region leads with a score of 62, driven largely by strong leasing activity and continued interest in residential projects in cities like Bengaluru and Hyderabad. Analysts note that the technology sector and corporate expansions in these cities are supporting sustained demand.
Northern Region: Delhi-NCR scored 56, recovering gradually after a period of slower activity. Office space demand remains steady, and residential launches are slowly picking up pace, particularly in well-connected neighborhoods.
Eastern and Western Regions: Both regions show moderate but stable growth, suggesting a balanced performance across the country. Tier-II cities in these regions are also contributing to the overall sentiment improvement.
Developers reported a sentiment score of 59, indicating steady confidence in project completions and sales. Banks and financial institutions were slightly more optimistic at 61, reflecting growing confidence in market liquidity, funding availability, and overall investment safety.
Residential Market Outlook
The residential sector continues to show promise. According to the survey, about 71% of respondents expect new launches to remain stable or even increase in the near term. Additionally, 74% believe that home sales will either hold steady or see growth, indicating that buyer demand is still strong despite rising property prices.
Premium and mid-segment properties in cities such as Delhi-NCR, Bengaluru, and Hyderabad are seeing notable price growth, driven by limited supply of ready-to-move-in units and increasing preference for quality construction and modern amenities. Real estate experts highlight that developers who focus on prime locations with better connectivity and infrastructure are likely to see strong interest from end-users and investors alike.
Office Market Outlook
The office sector is also performing steadily. Around 95% of respondents in the NAREDCO survey expect commercial rents to remain stable or rise, owing to a limited supply of high-quality office properties and consistent leasing activity. Analysts say that flexible workspaces, co-working setups, and premium office projects are maintaining demand even amid wider market uncertainties.
Investors view office spaces as a relatively safe investment due to predictable rental income and steady occupancy levels. The report highlights that cities with strong IT and corporate presence, such as Bengaluru, Pune, Hyderabad, and Gurugram, continue to attract both domestic and institutional investors.
Economic and Funding Support
The real estate sector’s optimism is reinforced by economic stability. Around 78% of respondents expect the Indian economy to either hold steady or improve, citing factors such as easing inflation, steady job growth, and continued government support. Funding conditions remain favorable, with banks providing sufficient liquidity for both residential and commercial projects.
Parveen Jain, president of NAREDCO, said, “The sentiment index shows that developers and investors are confident. Strong demand, policy continuity, and healthy funding conditions are keeping the real estate sector positive as we move through 2025.”
Jain also emphasized that while demand remains strong, developers need to focus on timely project delivery and compliance with regulations to maintain buyer trust and market stability.
Investor Confidence and Market Trends
The survey also indicates that investors are paying close attention to market trends such as infrastructure development, metro expansion, and urban planning. Properties in well-connected locations with modern amenities are expected to continue attracting strong demand.
While Tier-1 cities dominate premium and commercial markets, Tier-2 and Tier-3 cities are gradually emerging as viable options for investors seeking better value and long-term appreciation. Developers are increasingly exploring these regions to balance risk and capitalize on growing urbanization and local demand.
The NAREDCO Q3 survey demonstrates that India’s real estate market is gradually gaining momentum. Both residential and office segments are showing steady growth, and the positive sentiment among developers, investors, and financial institutions suggests confidence in sustainable market expansion over the coming months.
Source:TOI
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