Realty Sentiment Building Back

India’s real estate sector is showing shoots of recovery after nearly a year of subdued sentiment, with stakeholders including developers, financiers, and occupiers looking beyond short-term global headwinds, according to a report.

Improved macroeconomic conditions such as a cumulative 100 basis-point repo rate cut by the Reserve Bank of India, robust GST collections, easing liquidity amid a six-year low in consumer inflation, and lower loan rates are supporting investment decisions.

 “This recovery is led by steady office leasing, particularly by GCCs and flex operators, and strong demand for premium housing. “Regionally, sentiment has picked up across the board led by the South. Developers’ outlook has strengthened amid improved liquidity and lower borrowing costs. Backed by record GST collections and monetary easing, India’s realty sector appears well positioned for sustained growth through the rest of 2025,” according NAREDeo.

Key markets such as Bengaluru, Hyderabad, Mumbai, and Pune are leading the rebound, supported by strategic project launches and steady end-use demand.

Realty developers have shown a marked uptick in confidence, with their future sentiment score rising. Lower financing costs and steady demand for high-value residential and commercial properties are driving this shift.

Non-developer stakeholders, including backs, non-banking finance companies (NBFCs), and private equity investors, also reported improved sentiment.

In residential markets, about 70% of stakeholders expect the pace of new project launches to remain unchanged or increase.

The premium and luxury segments, especially residential properties priced above 1 crore, are witnessing continued traction, while activity in mid-and lower-income housing remains constrained due to affordability pressures and tighter margins.

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