Source: Hindustan Times ( http://bit.ly/4pIRPrO )

Real estate developers and financial institutions remain optimistic about growth in India’s property market over the next six months, despite ongoing global uncertainties.

The ₹1 crore-plus housing segment continues to outperform, driven by strong demand in select micro-markets. Developers are increasingly tailoring new launches to align with evolving lifestyle preferences and patterns of urban expansion.

Geographically, South India emerged as the most confident region, registering a Future Sentiment Score of 63. Key cities such as Bengaluru, Hyderabad, and Chennai led this momentum, supported by robust office space absorption and active developer participation in both plotted developments and apartment projects.

The report also pointed to renewed optimism in the housing market, especially in the premium segment, spurred by falling interest rates, record GST collections, and strong demand momentum.

Premium homes continue to attract buyers

The Q2 2025 Sentiment Index showed that around 70% of stakeholders expect residential launches to remain steady or increase in the coming months.

“The ₹1 crore-plus segment continues to outperform, with developers focusing on high-demand micro-markets and tailoring new launches to meet specific lifestyle needs and urban growth patterns. In contrast, launches in the mid- and low-income segments remain limited due to affordability constraints and shrinking margins, despite financing incentives,” the report said

Developers are more optimistic than before, the report said

One of the key highlights of the report is the surge in optimism among developers. “The sentiment among developers has seen a sharp increase, with their Future Sentiment Score rising from 53 in Q1 to 63 in Q2 2025. This change is largely attributable to easing financing conditions, falling borrowing costs following a 100-BPS cumulative repo rate cut by the Reserve Bank of India in H1 2025, and a visible pick-up in high-ticket residential demand,” the report said.

The non-developer stakeholders, which include banks, NBFCs, and private equity funds, have also reported a positive sentiment this quarter.