Real Estate Sentiment Cautiously Optimistic: Knight Frank-NAREDCO

New Delhi, May 19 (PTI) Real estate developers and financial institutions are optimistic about the growth prospects in India's property market in short term but have become cautious due to global economic uncertainties, according to Knight Frank and NAREDCO.

Real estate consultant Knight Frank and realtors' body NAREDCO released 'Real Estate Sentiment Index' for Q1, 2025 (January–March 2025), which reflects "a cautiously optimistic mood among real estate stakeholders."

The Current Sentiment Score in Q1, 2025 dipped slightly to 54 from 59 in Q4 2024, while the Future Sentiment Score eased to 56 compared to 59 in the previous quarter.

A score of 50 represents a neutral view or status quo; a score above 50 demonstrates a positive sentiment; and a score below 50 indicates a negative sentiment.

"Though both scores, remain in the optimistic zone, signal growing stakeholder caution amid global trade tensions, economic recalibration, and regional volatility," Knight Frank said in a statement on Monday.

In Q1 2025, 93 per cent of stakeholders (developers and financial institutions) expect residential prices to remain stable or improve, while 67 per cent anticipate stability or growth in new launches.

Residential sales sentiment, however, has moderated with only 50 per cent expecting it to either improve or stay the same compared to 88 per cent in Q1 2024, the consultant said.

Hari Babu, President of NAREDCO, said, "While the sentiment index shows a marginal decline in both current and future sentiment scores compared to Q4, this slight dip amidst global uncertainties reflects the strength and adaptability of India's real estate sector."

The industry continues to move forward with optimism and long-term conviction, he added.