According to the 47th edition of the Knight Frank-NAREDCO Real Estate Sentiment Index, the Current Sentiment Score rises to 60 in the fourth quarter of 2025, compared to 59 in the previous quarter, while the Future Sentiment Score remains unchanged at 61. The figures indicate balanced expectations for the next six months, supported by improving macroeconomic visibility, easing inflationary pressures and stable financing conditions.
Despite sentiment remaining below 2023-2024 highs, resilient office demand, improving liquidity conditions and stable domestic economic fundamentals continued to underpin confidence in the sector, the report said. The report further highlighted an improvement in sentiment around the availability of funding during the quarter, with a majority of stakeholders expecting liquidity conditions to remain stable or improve.
While lenders and investors remain selective, access to capital remains supportive across asset classes, aided by policy continuity and a focus on quality assets. At a regional level, future sentiment improved modestly across all zones, with each region remaining in bullish territory. The South Zone retained the highest score at 62, supported by strong office leasing in Bengaluru and Hyderabad, while the West and East Zones also recorded scores of 62.
The North Zone recovered to 59, reflecting stabilizing sentiment after weakness in previous quarters. Institutional stakeholders, including banks, financial institutions and private equity funds, reported higher levels of confidence, with a Future Sentiment Score of 63. However, developers remained more cautious, recording a score of 58, underscoring the continued emphasis on disciplined growth and demand-driven expansion.
The office segment continued to anchor overall market confidence throughout the quarter, driven by continued occupier demand, particularly from Global Capability Centers, and the limited availability of quality A-space. Consumer sentiment also improved, supported by steady demand in segments with higher ticket sizes and controlled supply additions. According to the Knight Frank-NAREDCO report, India’s real estate sector enters 2026 on a more stable footing, supported by better economic clarity, prudent capital deployment and demand-driven strategies across asset classes.
Published on January 17, 2026
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