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The Knight Frank-NAREDCO Real Estate Sentiment Index rises to 56 in Q2 2025 from 54 in Q1, breaking a four-quarter downward trend.

In the Delhi-NCR region, the real estate market is witnessing a robust resurgence, particularly in the luxury and ultra-luxury segments.
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.”
Sahil Agarwal, CEO of Nimbus Realty, said, “We are seeing a clear acceleration in premium residential demand in NCR, especially along the growth corridors like the Noida-Greater Noida Expressway. With Noida witnessing a 92% surge in the luxury and ultra luxury segment, the region has emerged as a turnkey bouquets of convenience. In sectors like Sector 168, premium projects are already in place, along with top-tier schools such as Shiv Nadar, established hospitals like Yatharth and Felix, and ready access to corporate hubs.”
Fortune 500 firms have planted roots nearby, boosting investor confidence. Buyers here truly ‘find everything’; connectivity, amenities, lifestyle and employment all in one corridor, and turning Sector 168 into the region’s leading micro‑market, he added.

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
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