New Delhi: After a period of cautious optimism, India’s real estate market is stepping into a phase of renewed confidence. The latest NAREDCO–Knight Frank Sentiment Index for April–June 2025 captures this mood. The Current Sentiment Score rose 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. It’s the clearest signal yet that developers, investors, and financial institutions are seeing brighter days ahead.
The boost reflects the strength of the country’s macroeconomic fundamentals, the steady improvement in housing affordability, and the visible surge in demand across both residential and commercial spaces. The industry is, once again, looking forward with intent rather than hesitation.
There is a strong macroeconomic base beneath the growing optimism. Stable GDP growth and stable interest rates have created a predictable environment for buyers and investors, and consistent government policy support has increased trust in the sector’s long-term stability. Connections on the ground are changing as a result of the push for infrastructure. Together with greater income stability, this has lifted consumer spirits and given businesses and individuals more self-assurance to make choices since they know the environment is conducive to security and growth.
The residential sector is also experiencing a visible uptick, with premium and luxury homes driving the market in large metropolitan areas. Due to a powerful combination of corporate presence, convenient access, and growing lifestyle infrastructure, Gurugram, Noida, and Delhi have become important hubs. According to the Savills India Delhi-NCR Residential Market Watch report, the market value of luxury floors in the capital grew by an average of 9% annually in the first quarter of 2025.
Further on the commercial front, leasing activity touched 5.7 million sq ft across the top seven cities, a 69% jump over the same period last year, with Delhi-NCR leading the charge in Q2, as per JLL’s report. Much of this growth stemmed from rising demand in the F&B sector, which accounted for 22% of local leasing.
Ashok Singh Jaunapuria, MD and CEO, SS Group, says, “The renewed optimism is clearly visible on the ground in Gurugram, where infrastructure upgrades, GCC’s presence, and lifestyle evolution are creating a self-sustaining growth cycle. We’ve observed a tangible shift in buyer behaviour where families are prioritising community living, security, and long-term value over short-term price considerations. This sentiment expedites decision-making process, preparing end-users to invest in premium properties. Hence, with projects aligning to evolving lifestyle needs and backed by a strong economy, Gurugram is not just riding the sentiment wave but shaping the very blueprint for NCR’s next decade of real estate growth.”
“The renewed optimism in India’s real estate market is particularly visible in Noida, Greater Noida, and Ghaziabad,” says Sanjay Sharma, Director, SKA Group. Buyers and investors are increasingly drawn to these areas for their strong connectivity, upcoming infrastructure, and premium residential options. With the market stabilising and lifestyle-led developments gaining traction, these micro-markets are poised for sustained growth.
Vishesh Rawat, vice-president and head of marketing, sales and CRM at M2K Group, added,’ ‘The renewed sentiment is finding strong expression in Gurugram, particularly along the Dwarka Expressway, which has emerged as a catalyst for the city’s next phase of growth. Sector 104, in particular, is witnessing a surge in interest as buyers recognise its unique blend of connectivity, premium living, and future-ready infrastructure. With the expressway linking Gurugram seamlessly to Delhi and the airport, the micro-market has gained tremendous traction from both end-users and investors, reaffirming Gurugram’s position at the forefront of NCR’s real estate revival.”
Vishal Sabharwal, Head Sales, Orris Group, says, “The sentiment index’s positive swing isn’t just statistical, it mirrors the renewed confidence we see among homebuyers, investors, and corporates across NCR. In housing, end-users are upgrading faster, while in commercial real estate, demand from new-age businesses and flexible workspace operators is driving leasing activity. Importantly, the market today is far more structured, transparent, and quality-focused than a decade ago, and with policy stability, infrastructure delivery, and a clear appetite for both living and working spaces, we foresee NCR positioned to remain one of India’s most dynamic markets in the years ahead.”
Thus, the renewed sentiment sweeping through Indian real estate goes beyond index scores. Buyers, investors, and developers are aligning in a shared belief that the market’s growth is built on more than short-term momentum.
