Mumbai, May 20 (IANS): Real estate sector in India is in a booming stage. As per The Knight Frank-NAREDCO Real Estate Sentiment Index Q1 2024 (January-March) report, the Current Sentiment Index Score jumped to 72, compared to last quarter's 69, setting a decadal high.
The Future Sentiment score experienced an increase, rising from 70 in Q4 2023 to 73 in Q1 2024.
A score of 50 indicates neutrality, scores above 50 signal positive sentiment, and scores below 50 denote negative sentiment.
As per this quarterly survey, 73 per cent of the respondents are anticipating an increase in residential sales in the next six months, compared to 65 per cent in the previous quarter. The positive homebuyer sentiment and stability in home loan interest rates have led stakeholders to expect that growth in demand will prevail in the residential sector in the next six months.
80 per cent of survey participants in Q1 2024 believed that residential launches would improve in the next six months.
82 per cent of the survey respondents in Q1 2024 expect residential prices to increase in the next six months. However, during Q4 2023, 65 per cent of survey respondents held a similar view.
Office leasing is expected to improve in the next six months by 74 per cent of survey respondents in Q1 2024. 69 per cent of survey respondents had a similar opinion in the previous quarter.
58 per cent of survey respondents expect office supply to improve in the next six months. In the previous quarter, 62 per cent of respondents held a similar opinion. With strong momentum in office leasing, the outlook towards new supply has also strengthened in the near term.
In Q1 2024, 65 per cent of the survey respondents expect office rents to increase. The survey respondents in Q4 2023 shared a similar view, with 53 per cent holding it.
Shishir Baijal, Chairman and Managing Director, Knight Frank India, 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.
Hari Babu, President-NAREDCO, said, “The Knight Frank NAREDCO Real Estate Sentiment Index for Q1 2024 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."