The mood is not just a fleeting emotion; it’s a tangible shift backed by hard data. The latest NAREDCO–Knight Frank Sentiment Index for April-June 2025 captures this positive turn. The Current Sentiment Score climbed to 56, up from 54, and the Future Sentiment Score surged to 61 from 56. This change is not a minor statistical blip. It represents the clearest signal yet. Developers, investors, and financial institutions are finally seeing much brighter days ahead. This new confidence is paving the way for sustained India’s real estate market growth.
A Strong Macroeconomic Base
A strong macroeconomic base lies beneath this growing optimism. The country’s stable GDP growth has created a predictable and reliable economic environment. This is crucial for big-ticket purchases like a home. Stable interest rates also play a significant role. They make home loans more accessible and affordable. This gives prospective buyers the confidence to enter the market without worrying about sudden cost increases. Consistent government policy support has also built trust in the sector’s long-term stability. These factors create a fertile ground for the current wave of optimism. This powerful driver is fueling India’s real estate market growth.
Residential Sector is a Prime Example
The residential sector is a prime example of this positive shift. You can see a visible uptick in demand, particularly for premium and luxury homes. This trend shows that homebuyers seek enhanced lifestyles and communities, not just a roof over their heads. This sentiment is most evident in major metropolitan areas. A powerful combination of corporate presence, convenient access, and modern lifestyle infrastructure has transformed cities like Gurugram, Noida, and Delhi into key residential hubs. The demand for high-end properties in these locations has been particularly strong. A report by Savills India confirms this. The market value of luxury floors in Delhi-NCR saw a robust annual growth of 9 percent in the first quarter of 2025. This is a clear indicator of the premium segment’s role in fueling India’s real estate market growth.
Commercial and Retail Spaces Surge
The positive sentiment is not confined to the residential market alone. It is also making a significant impact on the commercial front. Leasing activity across the top seven Indian cities soared to 5.7 million square feet in the second quarter. This marked a remarkable 69 percent jump over the same period last year. Delhi-NCR led this charge. Much of this growth stemmed from the F&B sector, which accounted for a substantial 22 percent of local leasing. This commercial vitality underscores a broader economic revival. It shows a growing appetite for physical business spaces. This signals a healthy and balanced approach to India’s real estate market growth. This kind of broad-based demand from both residential and commercial sectors indicates a very strong and sustainable growth cycle.
New Trends and Buyer Behavior
This renewed optimism is clearly visible on the ground. As Ashok Singh Jaunapuria, MD and CEO of SS Group, observes, infrastructure upgrades and lifestyle evolution create a “self-sustaining growth cycle” in Gurugram. This means Gurugram’s development feeds on itself. Each new infrastructure project or corporate entry attracts more residents and businesses. This is a major factor behind the sustained India’s real estate market growth. The market has also become far more structured and quality-focused than a decade ago. Vishal Sabharwal, Head of Sales at Orris Group, highlights this point. He feels that the positive swing in sentiment mirrors the renewed confidence he sees among homebuyers and corporates. This is a crucial distinction. The growth is no longer just speculative. It is driven by fundamental confidence in the market’s structure and quality, which ensures longevity for India’s real estate market growth.
Families now prioritize community living, security, and long-term value over short-term price considerations. This change in mindset is expediting decision-making. End-users are now more willing to invest in premium properties that align with their evolving lifestyle needs. This demand for quality spaces is a key factor pushing India’s real estate market growth forward. With policy stability and a clear appetite for both living and working spaces, experts foresee NCR positioned to remain one of India’s most dynamic markets. The region is setting a blueprint for the country’s real estate future.
Source – IndiaTVNews
