India’s real estate market is stepping into a phase of renewed confidence, driven by stable macroeconomic fundamentals, steady government policy support, and increasing demand for residential and commercial spaces. The NAREDCO–Knight Frank Sentiment Index for April–June 2025 shows a rise in Current Sentiment Score to 56 and Future Sentiment Score to 61, indicating brighter days ahead for developers, investors, and financial institutions.
The stable macroeconomic environment has created a predictable landscape for buyers and investors, with stable GDP growth and interest rates contributing to this stability. Consistent government policy support has also increased trust in the sector’s long-term stability. These factors have combined to create a favorable environment for growth in the real estate sector.
The residential sector is experiencing a visible uptick, with premium and luxury homes driving the market in large metropolitan areas like Gurugram, Noida, and Delhi. 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. The demand for premium properties is driven by buyers prioritizing community living, security, and long-term value over short-term price considerations.
The commercial sector is also seeing significant growth, with leasing activity touching 5.7 million sq ft across the top seven cities, a 69% jump over the same period last year. Delhi-NCR led the charge in Q2, with the F&B sector accounting for 22% of local leasing. According to Vishal Sabharwal, Head Sales, Orris Group, the market today is far more structured, transparent, and quality-focused than a decade ago, with policy stability, infrastructure delivery, and a clear appetite for both living and working spaces driving growth.
Experts believe that Gurugram is well-positioned for future growth, with infrastructure upgrades, GCC’s presence, and lifestyle evolution creating a self-sustaining growth cycle. Ashok Singh Jaunapuria, MD and CEO, SS Group, notes that Gurugram is shaping the blueprint for NCR’s next decade of real estate growth. Vishesh Rawat, Vice-President and Head of Marketing, Sales and CRM at M2K Group, adds that Sector 104 is witnessing a surge in interest due to its unique blend of connectivity, premium living, and future-ready infrastructure.
