The real estate market sentiment is rising as both developers and financial institutions are upbeat about the future.
According to a recent report by Knight Frank and NAREDCO, the outlook for the property market in the next six months looks promising, with high demand expected to continue.
The report, which surveyed developers, investors, and financial institutions, shows that the current sentiment score has increased from 59 to 69, indicating optimism. A score above 50 indicates optimism, while below 50 indicates pessimism.
Looking ahead, the future sentiment score has also risen from 65 to 70, driven by overall optimism about the Indian economy and sustained demand in the real estate sector.
This growth is supported by a stable economic outlook and significant progress across all major segments including residential, office space, industrial, warehousing, and retail.
In 2023, residential sales hit a decade-high, and the office sector had its second-best year with 59.6 million square feet of office space transactions. This sustained growth has fostered optimism among stakeholders for both the present and future.
NAREDCO President G Hari Babu highlighted optimism about India’s economic growth globally and balanced risk perspectives. He noted increased confidence in the residential market and anticipated growth in the office sector, signaling a positive trajectory for the next six months.
Despite a 250 basis points increase in policy rates by the Reserve Bank of India and a steady rise in residential prices, India’s top seven cities saw a ten-year high in annual residential sales, growing by 5 percent annually to 329,097 units in 2023.
The residential market outlook reflects enhanced optimism regarding sales and launches.
