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A sharp downward spiral in India’s real estate sentiment has hit a wall, leveling off at the neutral threshold as sustained office leasing demand and resilient domestic fundamentals counter persistent global headwinds.\u00a0<\/p>
According to the 49th edition of the Knight Frank-NAREDCO Real Estate Sentiment Index for Q2 2026 (April-June 2026), the Future Sentiment Score held steady at 50, halting the steep drop observed in Q1 2026.<\/p>
The current sentiment score dipped marginally by one point to 48, remaining in the pessimistic zone due to external pressures such as geopolitical tensions, volatile energy prices, and global inflationary trends.\u00a0<\/p>
Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said “The real estate sector continues to navigate a complex global environment characterised by geopolitical tensions, inflationary pressures and volatile energy markets. While these factors have weighed on current sentiment, the more significant takeaway from this quarter’s findings is the sharp decline witnessed in the previous quarter has levelled off, with future sentiment holding steady at the neutral threshold…”\u00a0<\/p>
Office sector anchoring market confidence\u00a0<\/strong><\/p> Despite macro uncertainties, the office market remains the strongest anchor for the sector, logging 48 million square feet in transactions during H1 2026 \u2014 a minor 2% year-on-year drop despite last year’s exceptionally high base.<\/p> Occupier demand continues to be driven by expansion activity from Global Capability Centres (GCCs), technology firms, and corporate occupiers. Stakeholder confidence stays constructive, with 74% expecting leasing volumes to remain stable or improve, 76% expecting stable or improved completions, and 81% forecasting firm or rising rents over the next six months.\u00a0<\/p> Residential market moves into consolidation\u00a0<\/strong><\/p> Meanwhile, the residential market is transitioning into a mature consolidation phase following years of sustained growth. Housing sales across top markets rose 1% year-on-year in H1 2026.<\/p> While caution remains, the degree of pessimism has moderated: the proportion of respondents expecting weaker demand dropped to 45% from 52% in Q1 2026. Property prices continue to show resilience, with 74% of respondents expecting prices to remain stable or increase, supported by persistent input cost pressures.\u00a0<\/p> Shri Parveen Jain, National President, NAREDCO, said \u201cThe current score has slipped a point to 48, reflecting a global environment that remains fast-evolving and difficult to read. The future score, however, holds firm at the neutral threshold of 50 \u2014 a signal that stakeholders see the challenges persisting rather than deepening, and that the sharp decline of the previous quarter has levelled off. Residential is settling into a more mature phase, a normalisation rather than a weakening, while office continues to anchor the market with resilient leasing and firm rents. The pressures at play are external in origin, and India’s real estate fundamentals remain robust enough to absorb them.\u201d\u00a0<\/p> Capital sentiment rebounds<\/strong><\/p> Across regions, sentiment remained near the neutral mark. The North Zone recovered modestly to 52 due to robust commercial activity, while the West Zone recorded 50. The South and East Zones remained cautious as stakeholders monitored evolving economic conditions.\u00a0<\/p> Capital availability outlook showed positive shifts. Sentiment among non-developer stakeholders \u2014 including banks, financial institutions, and private equity investors \u2014 improved to 53 in Q2 2026 from 50 in the previous quarter, while developer sentiment held flat at 51.<\/p> On the broader economy, the share of respondents expecting conditions to worsen fell to 36% from 50% in Q1 2026, while 50% expect funding conditions to stay unchanged.\u00a0<\/p> <\/div> #Office #demand #hits #India039s #macro #strengths #shield #property #market #global #shock1784841144<\/p> ","protected":false},"excerpt":{"rendered":" A sharp downward spiral in India’s real estate sentiment has hit a wall, leveling off at the neutral threshold as sustained office leasing demand and resilient domestic fundamentals counter persistent global headwinds.\u00a0 According to the 49th edition of the Knight Frank-NAREDCO Real Estate Sentiment Index for Q2 2026 (April-June 2026), the Future Sentiment Score held […]<\/p>\n","protected":false},"author":1,"featured_media":12312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[1578,187,442,1398,13896,1724,5614,23278,21406,7697,48264],"class_list":["post-12311","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-content-marketing","tag-demand","tag-global","tag-hits","tag-india039s","tag-macro","tag-market","tag-office","tag-property","tag-shield","tag-shock","tag-strengths"],"acf":[],"_links":{"self":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts\/12311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12311"}],"version-history":[{"count":0,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts\/12311\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/media\/12312"}],"wp:attachment":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12311"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}