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India's Property Market Sentiment Rises, Enters 2026 on Steadier Footing

Stakeholder sentiment in India's property market stabilized with a positive bias at the end of 2025, entering 2026 on a steadier footing. The improvement is supported by strong economic growth, easing inflation, and steady funding conditions. The office sector remains robust with strong leasing, while residential demand is healthy in higher ticket segments. All geographic regions reported optimistic scores, with institutional stakeholders showing particular confidence in future asset quality and liquidity.

Key Points: India Property Sentiment Up, Market Steadier in 2026: Report

  • Current Sentiment Score rose to 60
  • Future Sentiment holds at 61
  • Economic growth & liquidity boost confidence
  • Office and residential sectors show strength
  • All geographic regions remain optimistic
2 min read

India's property sentiment ticks up, market enters 2026 on steadier footing: Report

Knight Frank report shows India's property sentiment improved in Q4 2025, supported by economic growth, easing inflation, and steady funding.

"The readings underscore a market supported by improving macroeconomic visibility, easing inflation, and steady funding conditions. - Knight Frank-NAREDCO Report"

Mumbai, Jan 19

The stakeholder sentiment in India's property market stabilised with a positive bias at the end of 2025, as market enters 2026 on steadier footing, a report said on Monday.

The report from Knight Frank and NAREDCO showed that the 'Current Sentiment Score' edged up to 60 in Q4 2025, up from 59 in Q3, while 'the Future Sentiment Score' was 61, unchanged from the prior quarter, both remaining in the "optimistic zone."

"The readings underscore a market supported by improving macroeconomic visibility, easing inflation, and steady funding conditions," the report highlighted.

Around 52 per cent respondents signalled improving economic momentum with 50 per cent reporting improved funding availability, the report said.

Despite remaining below 2023-24 peaks, resilient office demand, improving liquidity, and stable domestic economic conditions support positive expectations amid global uncertainties.

The real GDP growth of 8.2 per cent in Q2 FY2025-26 versus 5.6 per cent a year earlier was cited as a confidence driver. Easing inflation, accommodative monetary conditions, and continued public capital expenditure have strengthened visibility on growth, the report said.

"High-frequency indicators continue to point to sustained economic momentum, helping offset global uncertainty and supporting real estate fundamentals," said Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.

Residential markets are benefiting from higher ticket size segment demand and calibrated supply, while the office sector continues to stand out on the back of robust leasing activity and firm rentals.

All regions remained optimistic in the survey with the South, East and West each scoring 62, led by strong office leasing in Bengaluru and Hyderabad as well as steady housing demand especially in higher ticket and mid-segment residential segments. The North Zone recovered to 59 in Q4 2025, reflecting stabilising sentiment after softness in earlier quarters, supported by steady office traction and ongoing infrastructure momentum, the report said.

Institutional stakeholders, including banks, financial institutions, and private equity funds, recorded a 'Future Sentiment Score' of 63, "reflecting rising confidence in asset quality and liquidity conditions," the report noted.

- IANS

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Reader Comments

S
Sarah B
The report is optimistic, but I have a respectful criticism. While sentiment is up, the scores are only just above 60. For the average homebuyer in tier-2 cities, the "higher ticket size segment demand" means prices are still out of reach for many. Affordability remains a key issue not fully addressed here.
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Vikram M
Good to see the North Zone recovering to 59. The infrastructure momentum in NCR and other parts is finally reflecting in sentiment. The 8.2% GDP growth is the real hero here – a strong economy fuels everything. Jai Hind!
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Priya S
As a small-time investor, the improved funding availability (50% reporting it) is the most crucial takeaway. Banks and institutions seem more confident, which should trickle down. Hope this steadier footing means fewer project delays.
R
Rohit P
Bengaluru and Hyderabad leading the charge as always! The IT corridor continues to drive office leasing, which supports the entire ecosystem. This positive sentiment is needed after the global uncertainties of the past few years.
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Karthik V
The report mentions "calibrated supply" in residential. That's a polite way of saying builders are being cautious and not over-launching projects. This is actually healthy for the market long-term. Prevents a bubble. Wise move.

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