Real Estate Sentiment Index Up: Positive Outlook for Next 6 Months - Knight Frank-NAREDCO
By Rediff Money Desk, New Delhi May 20, 2024 14:52
The Real Estate Sentiment Index rose in Q1 2024, with developers and institutions optimistic about growth. Knight Frank-NAREDCO report highlights strong economic growth and property demand as key factors.
New Delhi, May 20 (PTI) Real estate developers and financial institutions are bullish on growth in the Indian real estate sector, as the current sentiment index improved during January-March with high optimism for the next six months, according to Knight Frank-NAREDCO.
High economic growth and strong property demand are key factors for the improvement in their sentiments.
Real estate consultant Knight Frank and realtors' industry body NAREDCO on Monday released the Real Estate Sentiment Index Q1 2024 (January-March) report, which is based on a survey from supply-side stakeholders, showing an unprecedented surge in market confidence among the supply side of real estate.
The Current Sentiment Index Score improved to 72 against 69 in the preceding quarter. The Future Sentiment score also saw an uplift, climbing from 70 in October-December 2023 to 73 in January-March 2024.
"This positive trajectory reflects stakeholders' sustained optimism regarding the Indian economy, and the enduring demand in the real estate market," the consultant said.
The quarterly report provides a comprehensive analysis through a primary
survey of current and future sentiments in the real estate sector, considering the economic climate and funding availability as perceived by supply-side stakeholders and financial institutions.
A score of 50 indicates neutrality, above 50 signals positive sentiment, and below 50 denotes negative sentiment.
As per the report, the residential market outlook is particularly promising, with 82 per cent of respondents anticipating a rise in residential prices. Similarly, the office market outlook remains buoyant, with stakeholders confident in the performance across leasing, supply, and rent over the next six months.
Knight Frank India Chairman and Managing Director Shishir Baijal said, "The significant rise of the Current Sentiment Index Score within the optimistic territory is driven by India's robust economic landscape. Confidence among stakeholders has surged, with Indian enterprises, including those in the real estate sector, anticipating gains from a flourishing domestic economy".
The 8.4 per cent GDP growth in Q4 2023 exceeded expectations, solidifying India's position as the fastest-growing major economy globally, he noted.
"This growth reflects stakeholder optimism about the economy and sustained real estate demand, setting a promising tone for the real estate sector with ample opportunities for investment, expansion, and prosperity," Baijal said.
NAREDCO President Hari Babu said the report paints a buoyant outlook for the Indian real estate sector.
"With the Current Sentiment Index rising from 69 to 72 and the Future Sentiment Score climbing from 70 to 73, stakeholders demonstrate unwavering optimism, driven by the government's commitment to aggressive economic growth. India maintains stability and offers fertile ground for real estate growth," he said.
The highest recorded current sentiment index within the past decade underscores notable trends in residential and office segments, with significant upsurges in new launches, sales, and prices, Babu added.
High economic growth and strong property demand are key factors for the improvement in their sentiments.
Real estate consultant Knight Frank and realtors' industry body NAREDCO on Monday released the Real Estate Sentiment Index Q1 2024 (January-March) report, which is based on a survey from supply-side stakeholders, showing an unprecedented surge in market confidence among the supply side of real estate.
The Current Sentiment Index Score improved to 72 against 69 in the preceding quarter. The Future Sentiment score also saw an uplift, climbing from 70 in October-December 2023 to 73 in January-March 2024.
"This positive trajectory reflects stakeholders' sustained optimism regarding the Indian economy, and the enduring demand in the real estate market," the consultant said.
The quarterly report provides a comprehensive analysis through a primary
survey of current and future sentiments in the real estate sector, considering the economic climate and funding availability as perceived by supply-side stakeholders and financial institutions.
A score of 50 indicates neutrality, above 50 signals positive sentiment, and below 50 denotes negative sentiment.
As per the report, the residential market outlook is particularly promising, with 82 per cent of respondents anticipating a rise in residential prices. Similarly, the office market outlook remains buoyant, with stakeholders confident in the performance across leasing, supply, and rent over the next six months.
Knight Frank India Chairman and Managing Director Shishir Baijal said, "The significant rise of the Current Sentiment Index Score within the optimistic territory is driven by India's robust economic landscape. Confidence among stakeholders has surged, with Indian enterprises, including those in the real estate sector, anticipating gains from a flourishing domestic economy".
The 8.4 per cent GDP growth in Q4 2023 exceeded expectations, solidifying India's position as the fastest-growing major economy globally, he noted.
"This growth reflects stakeholder optimism about the economy and sustained real estate demand, setting a promising tone for the real estate sector with ample opportunities for investment, expansion, and prosperity," Baijal said.
NAREDCO President Hari Babu said the report paints a buoyant outlook for the Indian real estate sector.
"With the Current Sentiment Index rising from 69 to 72 and the Future Sentiment Score climbing from 70 to 73, stakeholders demonstrate unwavering optimism, driven by the government's commitment to aggressive economic growth. India maintains stability and offers fertile ground for real estate growth," he said.
The highest recorded current sentiment index within the past decade underscores notable trends in residential and office segments, with significant upsurges in new launches, sales, and prices, Babu added.
Source: PTI
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Vodafone Idea L
- 8.36 ( -0.12)
- 56233421
- Srestha Finvest
- 0.60 (+ 3.45)
- 40360444
- Standard Capital
- 0.99 ( -1.00)
- 23259568
- AvanceTechnologies
- 0.92 ( 0.00)
- 16468235
- Gujarat Natural Res
- 24.73 (+ 4.13)
- 12245243
MORE NEWS
Bihar Food Processing Investors' Meet: Chirag...
Bihar hosts a food processing investor meet on December 2nd, showcasing its potential...
India's Coal Production Rises 7.2% in November
India's coal production increased by 7.2% in November 2024 to 90.62 million tonnes,...
Petrol & Diesel Sales Surge on Festive Demand
India's petrol and diesel consumption rebounded in November, driven by festive season...