Latest news with #KnightFrank-NAREDCORealEstateSentimentIndex
News18
31-07-2025
- Business
- News18
Premium Property Surge Boosts India's Real Estate Recovery In Q2 2025: Report
The Knight Frank-NAREDCO Real Estate Sentiment Index rises to 56 in Q2 2025 from 54 in Q1, breaking a four-quarter downward trend. India's real estate sector is showing signs of cautious yet promising recovery in the second quarter of 2025, according to the latest Knight Frank-NAREDCO Real Estate Sentiment Index. The report highlights a notable uptick in stakeholder optimism, with the Sentiment Index rising to 56 in Q2 2025 from 54 in Q1, breaking a four-quarter downward trend. The Future Sentiment Score also climbed significantly to 61 from 56, reflecting growing confidence in the sector's performance over the next six months. This resurgence is largely driven by robust demands for premium homes priced above Rs 1 crore, alongside easy financing conditions and strategic developers focusing on high-demand micro market. With developers tailoring new launches to meet evolving lifestyle preferences and urban expansion patterns, the premium housing segments, particularly properties exceeding Rs 1 crore has emerged as a key driver growth. Approximately 70% stakeholders anticipate that residential launches will either remain steady or increase in the coming month, with the Rs 1 crore-plus segment outperforming due to strong demand in select markets. According to the report, 94% of the stakeholders anticipate that home prices will either stay the same or increase, consistent with the previous quarter's outlook. Cities like Delhi-NCR, Bengaluru and Chennai have reported double-digit year-on-year price growth fuelled by limited fresh supply and demand for branded homes with lifestyle amenities. South India leads regional sentiment with a Future Sentiment score of 63, driven by Bengaluru and Hyderabad's commercial strength and lifestyle housing demand. The West and East zones scored 61, while the North (Delhi-NCR) rebounded from 48 to 55, thanks to improved infrastructure and rising premium property focus. In the Delhi-NCR region, the real estate market is witnessing a robust resurgence, particularly in the luxury and ultra-luxury segments. The region recorded 81% increase in average property prices from Rs 4,580 per sq ft in 2020 to Rs 8,300 per sq ft in Q1 2025, with Greater Noida leading a 98% price surge to ₹6,600 per sq ft. Noida followed closely with a 92% rise, reaching Rs 9,200 per sq ft. The decline in unsold inventory by 51% from 1.73 lakh units in Q1 2020 to 84,500 units in Q1 2025 further underscores the region's strong demand, particularly for high-end homes priced above Rs 2.5 crore, which accounted for 59% of new launches in 2024. This growth is supported by structural reforms like RERA and the SWAMIH fund, alongside infrastructure developments enhancing connectivity. 'The Knight Frank-NAREDCO report highlights a pivotal recovery in India's real estate market, driven by strong demand for homes priced above Rs 1 crore. In Delhi-NCR, enhanced infrastructure and a clear focus on premium properties have fuelled this resurgence, lifting the North zone's Sentiment Score from 48 in Q1 to 55 in Q2 2025. This improvement reflects growing confidence among end-users and investors alike, underscoring a positive outlook for the region's realty sector. With favourable financing conditions and rising demand, Delhi-NCR is set to maintain this upward momentum through the remainder of 2025," Rahul Singla, director of Mapsko Group. Adil Altaf, managing director of Trinity, said, 'The latest Knight Frank-NAREDCO report signals a vital recovery for Delhi NCR's real estate in Q2 2025. The region's sentiment score jumped from 48 in Q1 to 55 in Q2, driven by improving infrastructure and strong demand for premium homes above Rs 1 crore. Improved infrastructure, easier borrowing conditions, and a renewed sense of optimism among homebuyers and developers are key reasons behind this positive shift. At ground level, families are seeking quality living with better amenities, and developers are stepping a notch to meet these expectations." Rakesh Malhotra, founder and chairman of PRIME Developments, said, 'Knight Frank's Q2 2025 findings highlight renewed momentum in Delhi NCR's housing market, especially for residences priced over Rs 1 crore. The region has seen a decisive shift, with upbeat sentiment and a deliberate focus on the premium segment across select micro-markets. Developers are more confident today, thanks to falling interest rates and a collaborative focus with financial institutions. People are looking for homes that match with their evolving lifestyles. The palpable sense of recovery and forward thinking is energising the entire region's property sector." 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Hindustan Times
29-07-2025
- Business
- Hindustan Times
India's real estate market in ‘cautious recovery' mode; ₹1 crore homes drive growth in Q2 2025
Real estate developers and financial institutions remain optimistic about growth in India's property market over the next six months, despite ongoing global uncertainties. According to the Knight Frank-NAREDCO Real Estate Sentiment Index, the sector displayed signs of a 'cautious recovery' in Q2 2025. The ₹1 crore-plus housing segment continues to outperform, driven by strong demand in select micro-markets. Developers are increasingly tailoring new launches to align with evolving lifestyle preferences and patterns of urban expansion. Despite global uncertainties, real estate developers and financial institutions remain optimistic about India's property market growth over the next six months, the Knight Frank-NAREDCO report said. (Representational photo)(Pixabay) Geographically, South India emerged as the most confident region, registering a Future Sentiment Score of 63. Key cities such as Bengaluru, Hyderabad, and Chennai led this momentum, supported by robust office space absorption and active developer participation in both plotted developments and apartment projects. 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 also pointed to renewed optimism in the housing market, especially in the premium segment, spurred by falling interest rates, record GST collections, and strong demand momentum. Also Read: Bengaluru, Mumbai, Delhi among top 15 global cities for prime residential price growth: Knight Frank report Premium homes continue to attract buyers The Q2 2025 Sentiment Index showed that around 70% of stakeholders expect residential launches to remain steady or increase in the coming months. "The ₹1 crore-plus segment continues to outperform, with developers focusing on high-demand micro-markets and tailoring new launches to meet specific lifestyle needs and urban growth patterns. In contrast, launches in the mid- and low-income segments remain limited due to affordability constraints and shrinking margins, despite financing incentives," the report said The sentiment on pricing remained stable, with 94% of stakeholders anticipating stable or rising residential prices, consistent with last quarter's outlook. Cities like Bengaluru, NCR, and Chennai have reported double-digit year-on-year price growth in H1 2025, driven by limited fresh supply and strong demand for branded homes with lifestyle amenities. The report pointed out that sales expectations have also strengthened modestly. In Q2 2025, 52% of respondents expect residential sales to remain stable or improve over the next six months, slightly higher than the 50% recorded in Q1. Developers are more optimistic than before, the report said One of the key highlights of the report is the surge in optimism among developers. "The sentiment among developers has seen a sharp increase, with their Future Sentiment Score rising from 53 in Q1 to 63 in Q2 2025. This change is largely attributable to easing financing conditions, falling borrowing costs following a 100-BPS cumulative repo rate cut by the Reserve Bank of India in H1 2025, and a visible pick-up in high-ticket residential demand," the report said. The non-developer stakeholders, which include banks, NBFCs, and private equity funds, have also reported a positive sentiment this quarter. Their score improved from 57 to 60 in Q2 2025, reflecting greater comfort with the quality of inventory being developed and a growing alignment between funding institutions and developers in terms of strategic market focus, it noted. Also Read: Developers, financial institutions cautiously optimistic of growth in the real estate sector South India leads regional sentiment The report said that geographically, South India, home to high-growth residential markets such as Bengaluru, Hyderabad, and Chennai, emerged as the most confident region with a Future Sentiment Score of 63, supported by office absorption and strong developer activity in both plotted and apartment segments. "The north zone, which had hit a post-COVID low of 48 in Q1 2025, recovered to a score of 55 in Q2 2025, supported by improving infrastructure connectivity, a resurgence in demand in Delhi-NCR, and a shift in developer focus toward premium inventory. The West zone saw an increase from 58 to 61, underpinned by continued strength in markets like Mumbai and Pune, which are seeing a consolidation of residential supply and sustained demand for office space," the report said. Meanwhile, the East zone held steady at 61, with Kolkata's residential segment showing consistent mid-market activity and buyer confidence.
Time of India
19-05-2025
- Business
- Time of India
Realty stakeholders' sentiment turns cautious optimistic in Q1 amid global headwinds
Stakeholders in the real estate industry, such as developers, financiers, and institutional investors remained cautiously optimistic in the first quarter of 2025, even as sentiment levels showed a slight dip, showed the Knight Frank-NAREDCO Real Estate Sentiment Index for January-March. The current sentiment score declined to 54 from 59 in Q4 2024, while the future sentiment score eased to 56, also down from 59. Both metrics, though still in the optimistic zone, reflect rising caution amid global trade tensions , regional instability, and broader economic recalibration. Commercial real estate continues to underpin market resilience , with robust leasing activity and steady rental growth supporting positive sentiment. In the first quarter of 2025, around 82% of stakeholders expected leasing volumes to remain stable or increase, while 91% anticipated rents would hold steady or rise—signalling sustained demand and occupier confidence. The residential segment presents a mixed picture. While 93% of respondents of the survey expected prices to stay stable or increase, only 67% foresee similar trends in new launches. Sentiment on residential sales has notably moderated, with just 50% of stakeholders expecting improvement or stability--down from 88% in the first quarter of 2024. 'Q1 2025 marks a phase of strategic recalibration for the real estate sector, shaped by evolving global trade dynamics, softening consumption, and heightened geopolitical sensitivity. Despite these shifts, India's office market remains resilient, and the continued strength of the premium residential segment affirms the sector's underlying robustness. As macroeconomic indicators adjust, real estate is displaying its capacity to adapt with stability and long-term potential,' Shishir Baijal, CMD, Knight Frank India. These findings, part of the Knight Frank–NAREDCO Real Estate Sentiment Index for Q1 2025, gauge perceptions from developers, lenders, and other supply-side players. A score above 50 signals optimism, while anything below 50 indicates negative sentiment. 'While the Sentiment index shows a marginal decline in both current and future sentiment scores compared to Q4, this slight dip amidst global uncertainties reflects the strength and adaptability of India's real estate sector. The industry continues to move forward with optimism and long-term conviction,' said Hari Babu, president, NAREDCO. According to him, the Indian real estate sector is showcasing robust performance in the commercial segment, driven by the demand from Global Capability Centres (GCCs) and tech-enabled enterprises — reaffirming India's growing stature as a global business hub. On the residential front, developers are adopting a more mature, demand-led approach by focusing on high-ticket projects while rebalancing supply in the mid and affordable segments. The developer future sentiment score dropped to 53 in Q1 2025 from 58 in Q4 2024, as developers recalibrate supply strategies amid slowing low to mid ticket size segment demand in the residential sector and rising costs. The non-developer future sentiment score--including banks, financial institutions, and private equity funds--moderated to 57 from 60, reflecting a wait-and-watch approach on capital deployment, while remaining optimistic on office and high-ticket size residential segments. Economic Times WhatsApp channel )
