Positive Growth Forecast for India's Real Estate Sector: Latest Report
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Mumbai, Nov 29 (NationPress) There is an increasing sense of assurance in the expansion of India’s real estate sector for the upcoming six months, as indicated by a Knight Frank-NAREDCO survey published on Friday.
In the residential market, optimism is strong with 62 percent of participants expecting an increase in property prices, driven primarily by consistent demand from the luxury segment, particularly for properties priced at Rs 10 million and above. Moreover, 40 percent of respondents predict a rise in sales, while 38 percent foresee a stable market. Likewise, the outlook for the office market is positive, with a robust confidence in essential factors such as leasing, supply, and rental rates, highlighting stakeholders' expectations for strong performance in the months to come, as noted in the report.
The Knight Frank-NAREDCO Real Estate Sentiment Index measures the views of supply-side stakeholders and financial institutions regarding the real estate sector, the economic environment, and funding availability. A score of 50 indicates a neutral perspective; scores exceeding 50 suggest positive sentiment, while scores below 50 indicate negative sentiment.
The Developer Future Sentiment Score increased from 61 in Q2 2024 to 65 in Q3 2024, signifying a resurgence of optimism. Developers are maintaining a positive outlook, adjusting to changing market trends, and capitalizing on ongoing sales momentum, the report highlighted.
On the other hand, the Non-Developer Future Sentiment Score (which includes banks, financial institutions, and private equity funds) has remained stable at 68 through Q2 and Q3 2024, reflecting confidence in well-structured real estate initiatives and the sector's long-term growth potential, as observed in the report.
Knight Frank India CMD Shishir Baijal stated, "The Q3 2024 Real Estate Sentiment Index underlines the robustness of India’s real estate sector. Although the Current Sentiment Score slightly declined, the Future Sentiment Score improved, showcasing increasing confidence among stakeholders. The strong demand in high-end residential sales and stable leasing in commercial properties highlight the sector's consistent performance."
The office market outlook for Q3 2024 demonstrates strong confidence, with stakeholders optimistic about the sector's long-term potential. The survey revealed that 76 percent of respondents expect an improvement in office leasing, driven by positive corporate sentiment and a sustained demand recovery. Additionally, 47 percent anticipate a rise in office supply, indicating stability and ongoing growth in the sector.
This optimism also extends to rental performance, as 73 percent of respondents expect an increase in office rents, driven by a growing demand for high-quality office environments. These findings emphasize the resilience and growth trajectory of India’s office market, supported by a favorable economic backdrop and evolving corporate needs.
According to the survey results, 46 percent of participants foresee an enhancement in the economic landscape, reflecting tempered optimism about India's economic resilience and growth potential, while 47 percent anticipate an increase in funding availability, showing moderated confidence compared to 51 percent in the previous quarter.
