Realty Confidence Stabilises as India’s Property Market Enters 2026 on Firm Footing

India’s real estate sector closed the October–December quarter (Q4) of 2025 with stable and optimistic sentiment among market participants, according to the latest Knight Frank-NAREDCO Real Estate Sentiment Index. The index’s Current Sentiment Score edged up to 60, while the Future Sentiment Score remained at 61, both indicating confidence in short- and medium-term market prospects.

Analysts say this steadiness comes despite ongoing global economic uncertainties, reflecting underlying strength in office leasing demand, improving liquidity conditions and stable domestic economic indicators. These fundamentals have helped buoy expectations for 2026, with both residential and commercial segments showing balanced sentiment.

The sustained optimism is supported by improving macroeconomic visibility, easing inflationary pressures and steady funding availability for real estate projects, according to the report. Even as sentiment remains below the peak levels seen in 2023–24, the stabilization suggests confidence among developers, investors and institutional players in the market’s future trajectory.

Experts believe that this balanced outlook will help maintain investment interest and development activity across key regions in India, and it sets a positive tone for the real estate industry as it heads into 2026.