IANS
There is an increasing sense of optimism regarding the growth of India's real estate sector over the next six months, as indicated by a Knight Frank-NAREDCO survey published on Friday.
In the residential market, a prevailing sense of confidence exists, with 62 percent of respondents expecting an increase in residential prices, driven primarily by sustained demand from the luxury segment, particularly properties priced at Rs 10 million and above. Additionally, 40 percent of respondents anticipate a rise in sales, while 38 percent predict market stability. The outlook for the office market is similarly positive, with strong confidence in critical factors such as leasing, supply, and rental rates, highlighting stakeholder optimism for strong performance in the upcoming months, according to the report.
The Knight Frank-NAREDCO Real Estate Sentiment Index reflects the views of supply-side stakeholders and financial institutions regarding the real estate sector, the economic environment, and the availability of funding. A score of 50 denotes a neutral perspective; scores exceeding 50 indicate positive sentiment, whereas scores below 50 suggest a negative outlook.
The Developer Future Sentiment Score rose from 61 in Q2 2024 to 65 in Q3 2024 indicating renewed optimism. Developers remain positive, adapting to shifting market dynamics and leveraging ongoing sales momentum, the report said.
Meanwhile, the Non-Developer Future Sentiment Score (comprising banks, financial institutions, and PE funds) maintains the status quo at 68 through Q2 and Q3 2024, reflecting their confidence in well-structured real estate projects and the sector's long-term growth prospects, the report observed.
Knight Frank India CMD Shishir Baijal said, "The Q3 2024 Real Estate Sentiment Index highlights the strength & India's real estate sector. While the Current Sentiment Score moderated slightly, the Future Sentiment Score improved, reflecting growing confidence among stakeholders. Strong demand in high-end residential sales and stable leasing in commercial spaces underscore the sector's steady performance."
The office market outlook for Q3 2024 reflects strong confidence, with stakeholders optimistic about the sector's long-term potential. According to the survey, 76 per cent of respondents expect office leasing to improve, driven by positive corporate sentiment and a sustained recovery in demand. Additionally, 47 per cent predict an increase in office supply, highlighting stability and continued growth in the sector.
This confidence extends to rental performance, as 73 per cent of respondents anticipate a rise in office rents, fuelled by increasing demand for high-quality office spaces. These findings underscore the resilience and growth trajectory of India's office market, bolstered by a favourable economic environment and evolving corporate requirements. Based on the findings of the survey 46 per cent of respondents expect an improvement in the economic scenario, reflecting softened optimism about India's economic resilience and potential growth while 47 per cent anticipate an increase in funding availability, demonstrating moderated confidence when compared to 51 per cent in the previous quarter.
