Real Estate Market Sentiment At A Decade High, Strong Economy: NARETCO-Knight Frank Report

The residential market outlook for Q1 2024 is particularly promising, with 82 percent of respondents expecting residential prices to rise.

This remarkable achievement is underscored by India’s strong economic landscape, with stakeholders across the board expressing high confidence and trust, says NAREDCO.

There has been an unprecedented surge in real estate market confidence on the supply side, marking a significant milestone for the sector. NAREDCO-Knight Frank’s current sentiment index score rose to 72, up from 69 last quarter, and setting a decade high.

„This remarkable achievement is underscored by India’s strong economic landscape, with stakeholders across the board expressing high confidence and trust,” NAREDCO said in a statement.

Driven by a strong domestic economy, the future sentiment score rose from 70 in Q4 2023 to 73 in Q1 2024. This positive trajectory reflects stakeholders’ continued confidence in the Indian economy and the sustained demand in the real estate market. As per NAREDCO-Knight Frank Real Estate Sentiment Index Q1 2024 (January – March) report.

The housing market outlook for Q1 2024 is particularly promising, with 82 percent of respondents expecting housing prices to rise. Similarly, the office market outlook remains upbeat, with stakeholders confident of performance in leasing, supply and rental over the next six months.

The quarterly NAREDCO-Knight Frank report provides a comprehensive analysis of current and future sentiments in the real estate industry. A score of 50 indicates neutral, a score above 50 indicates positive sentiment, and a score below 50 indicates negative sentiment.

The Developer Future Sentiment Score rose from 68 in Q4 2023 to 71 in Q1 2024. With strong buyer sentiment for property and the Reserve Bank of India’s (RBI) steady policy on the repo rate for over a year, real estate developers are optimistic. Sector growth in the next six months.

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Meanwhile, the non-developer future sentiment score, which includes banks, financial institutions and private equity funds, remained steady at 73 in the 4th quarter of 2023 and the first quarter of 2024. While institutional investors have maintained a cautious stance, their confidence in the Indian economy remains remarkably high. increased during this period.

Hari Babu, Chairman, NAREDCO said, “The Knight Frank NAREDCO Real Estate Sentiment Index for Q1 2024 presents an upbeat outlook for the Indian real estate sector. With the current sentiment index rising to 72 from 69 and the future sentiment score rising to 73 from 70, stakeholders are expressing unwavering confidence in the government’s commitment to aggressive economic growth. India maintains stability and provides fertile ground for real estate development.

The current sentiment index recorded over the last decade underlines significant trends in the residential and office segments, with significant upswing in new launches, sales and prices. He added that NAREDCO is committed to moving the real estate sector towards the path of sustainable prosperity and inclusive growth.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “The significant rise in current sentiment index scores within the confidence territory is driven by India’s strong economic landscape. As Indian companies, including the real estate sector, look to the benefits of a growing domestic economy, confidence among stakeholders has increased.

GDP growth of 8.4 per cent in the 4th quarter of 2023 exceeded expectations, cementing India’s position as the fastest growing major economy globally. This development reflects stakeholders’ confidence in the economy and sustainable real estate demand, setting an optimistic tone for the real estate sector with ample opportunities for investment, expansion and prosperity.

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