next months Will the real estate market continue to be bullish or will there be a recession? If you are also looking for the answer to this question, you can get it from the Real Estate Sentiment Index. Knight Frank and real estate body NAREDCO on Friday published the ‘Real Sentiment Perception Index (July-September 2024)’ report. According to this report, it has been mentioned that the upward trend in the real estate sector will continue. The property sentiment index declined marginally to 64 in the September quarter, down from 65 in the April-June period. However, business sentiment towards the future rose from 65 in the June quarter to 67. This is a sign of growing confidence in the sector’s growth over the next six months. A level of 50 on the index indicates a neutral outlook, while anything above 50 signifies positive sentiment.
Indian real estate sector remains strong
NAREDCO Chairman G Hari Babu said the sentiment index “reflects the strength of the Indian real estate sector amid global uncertainties.” He said the RBI’s GDP growth forecast of 7.2 per cent for 2024-25 and a stable interest rate environment will further boost investor confidence. As the sector continues to grow, it is essential that we address current challenges and seize opportunities for continued growth. The index reflects the perceptions of supply-side stakeholders and financial institutions about the real estate sector, the economic environment and the availability of financing. According to the report, both the current sentiment index and the future sentiment index remain firmly in positive territory, reflecting confidence in the long-term potential of the industry.
The price will continue to rise
Knight Frank India said optimism remains high in the residential market as 62 per cent of participants expect prices to increase, while 40 per cent expect sales to increase and 38 per cent expect the market stabilizes. Shishir Baijal, Chairman and Managing Director, Knight Frank India, said strong demand in high-end residential sales and stable tenancies in commercial spaces underline the strong performance of the sector. “Businesses remain optimistic with improved sentiment this quarter. With strong economic fundamentals and a favorable market, the sector is well positioned for continued growth and opportunities,” he said.
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