The Indian real estate market has been on a steady rise in the past few years, with the demand for residential and commercial properties increasing at a rapid pace. In line with this trend, the 46th edition of the Knight Frank – Naredco Real Estate Sentiment Index Q3 2025 has reported a significant increase in the ‘Current Sentiment Score’ for the third quarter ended September 30, 2025. The score has gone up to 59, as compared to 56 in the previous quarter, indicating a positive sentiment among industry experts and stakeholders.
The Knight Frank – Naredco Real Estate Sentiment Index is a quarterly survey that tracks the sentiments of real estate developers, private equity players, banks, and other stakeholders in the Indian real estate market. It is considered as a reliable indicator of the current and future market conditions, providing valuable insights into the industry’s performance.
The Q3 2025 edition of the index has revealed a significant improvement in the overall sentiment score, which has been on a continuous rise since the beginning of this year. This upward trend is a clear indication of the growing confidence in the Indian real estate market, which has been witnessing a series of positive developments in recent times.
One of the major factors contributing to this surge in sentiment is the government’s proactive measures to boost the real estate sector. The introduction of the Real Estate (Regulation and Development) Act, 2025, has brought in much-needed transparency and accountability in the industry, making it more attractive for both buyers and investors. The implementation of Goods and Services Tax (GST) has also streamlined the taxation system, making it easier for developers to do business.
The increase in the ‘Current Sentiment Score’ can also be attributed to the growing demand for affordable housing in the country. With the government’s focus on providing ‘Housing for All’ by 2025, developers are now shifting their focus towards the affordable segment, which has seen a significant rise in demand in the past few years. This has not only boosted the sentiment but has also led to a surge in new project launches in this segment.
The commercial real estate sector has also witnessed a positive sentiment, with the rise of co-working spaces and the growing demand for office spaces in major cities. The increasing interest of foreign investors in the Indian market has also played a crucial role in boosting the sentiment, with many global players showing a keen interest in investing in the country’s commercial real estate sector.
The sentiment score for the residential segment has also seen a significant improvement, with the demand for ready-to-move-in properties on the rise. The ongoing pandemic has led to a shift in consumer preferences, with buyers now looking for homes that offer a better work-life balance and are located in less congested areas. This has led to a surge in demand for properties in the outskirts of major cities, where developers are now focusing on launching new projects.
The sentiment score for the next six months has also seen a positive trend, with a score of 62, indicating a high level of optimism among industry experts and stakeholders. This can be attributed to the various government initiatives and the overall positive sentiment in the market.
In conclusion, the 46th edition of the Knight Frank – Naredco Real Estate Sentiment Index Q3 2025 has brought in some much-needed positive news for the Indian real estate market. The increase in the ‘Current Sentiment Score’ and the overall optimism for the next six months is a clear indication of the industry’s resilience and its ability to bounce back from the challenges posed by the pandemic. With the government’s continued support and the industry’s proactive approach, the Indian real estate market is poised for a strong and sustained growth in the coming years.
