The Knight Frank–NAREDCO Real Estate Sentiment Index for Q1 2026 reveals a significant decline in sentiment among real estate stakeholders, with the Current Sentiment Score falling to 49 from 60 in Q4 2025. This shift is attributed to global uncertainties, including elevated crude oil prices and tighter financing conditions, which are affecting both demand and supply in the market. The residential segment is experiencing a recalibration, with 52% of respondents anticipating a drop in housing sales, while nearly half expect fewer project launches. Despite this, 73% of stakeholders believe prices will remain stable or increase due to rising input costs. Conversely, the office segment shows resilience, achieving record leasing activity amidst limited supply. Stakeholders are likely to adopt a cautious approach as they navigate these macroeconomic challenges, reflecting a broader trend of moderation in sentiment following a period of growth.