Realtors, financial firms bullish on Indian real estate growth: Report

Real estate developers and financial institutions have become more optimistic towards growth in India's property market for the next six months despite global uncertainties, according to Naredco and Knight Frank.

On Tuesday, realtors' body Naredco and property consultant Knight Frank India have released the 45th edition of the 'Real Estate Sentiment Index' for April-June quarter, which showed a significant shift in the mood of the supply-side stakeholders in the Indian real estate sector.

"Following a year-long moderation in sentiment, stakeholders are beginning to look beyond short-term global uncertainties and are anchoring their expectations on India's structural economic strength, accommodative monetary policy, and robust demand in premium residential and office segments," the consultant said.

 

The Current Sentiment Score rose modestly to 56 in the April-June quarter, from 54 in the preceding January-March period, ending a four-quarter downward streak. The Future Sentiment Score climbed to 61 in April-June, from 56 a quarter ago.

A score of 50 indicates a neutral outlook; scores above 50 reflect positive sentiment, while those below 50 suggest a negative outlook.

The report noted that India's economic environment has become more conducive to growth and investment because of low inflation, high GST collections and reduction in interest rates.

Naredco President Hari Babu said the index reflects renewed optimism in the sector.

"This recovery is led by steady office leasing -- particularly by GCCs and flex operators -- and strong demand for premium housing... Developers' outlook has notably strengthened amid improved liquidity and lower borrowing costs. Backed by record GST collections, robust PMI, and monetary easing, India's real estate sector appears well positioned for sustained growth through the rest of 2025," he said.

Knight Frank India CMD Shishir Baijal said the recovery in both current and future sentiment scores reflects the sector's resilience and adaptability.