Mumbai, July 23, 2026 (BFN Bureau): The 49th edition of the Knight Frank–NAREDCO Real Estate Sentiment Index for Q2 2026 indicates that India’s real estate sector is entering a phase of stabilisation despite persistent global uncertainties. The Current Sentiment Score softened marginally to 48 from 49 in the previous quarter, remaining in the pessimistic zone, while the Future Sentiment Score held steady at 50, signalling that the sharp deterioration witnessed in Q1 2026 has levelled off.
The moderation in sentiment is driven by external factors, including geopolitical tensions, volatile energy prices, and inflationary pressures that have clouded the global economic outlook. However, the resilience of India’s domestic economy, sustained occupier demand in the office market, and a gradual easing of pessimism across key real estate indicators suggest that stakeholder confidence is beginning to stabilise.
Current and Future Sentiment Scores
The Current Sentiment Score slipped by one point quarter-on-quarter to 48, reflecting continued caution among stakeholders amid a challenging global environment. The Future Sentiment Score remained unchanged at 50, indicating that stakeholders expect prevailing challenges to persist over the next six months.
Stakeholder Insights
Shishir Baijal, International Partner, Chairman and Managing Director of Knight Frank India, stated, “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.”
Key Takeaways
- Current Sentiment Score for Q2 2026 is 48, down from 49.
- Future Sentiment Score remains stable at 50.
- Developer sentiment is flat at 51, while non-developer sentiment has improved to 53.
- Residential market shows signs of moderation with a 1% year-on-year increase in housing sales in H1 2026.
