Real estate stocks 2024 | Image:Freepik
Real estate optimism 📈: The real estate sector in the country witnessed a surge in optimism as the Current Sentiment Index Score climbed to 69 from last quarter’s score of 59, according to Knight Frank-NAREDCO Real Estate Sentiment Index for Q4 2023.
According to experts, this substantial increase underscores a strong faith in the current economic trajectory, attributed to timely interventions by the Reserve Bank of India (RBI) and sustained GDP growth. Stakeholders exhibit confidence in India’s economic landscape, fuelled by a controlled policy environment and favourable economic indicators.
Sector confidence peaks
In addition to the overarching positive sentiment, both developers and non-developers express confidence in the sector’s future prospects. Developers’ Future Sentiment Score climbed from 66 to 68, signalling an optimistic outlook for growth amid a stable policy environment. Meanwhile, non-developer entities, including banks, financial institutions, and PE funds, register an enhanced confidence level, with their Future Sentiment Score ascending from 64 to 73.
Residential growth forecast
The residential segment appears poised for continued growth, with stakeholders anticipating sustained momentum in sales and launches. A notable 65 per cent of respondents foresee an increase in residential sales over the next six months, buoyed by the MPC’s consecutive interest rate pauses, which instil confidence in steady demand. Additionally, 71 per cent of respondents expect a surge in residential launches, while 65 per cent anticipate a rise in residential prices.
Office market outlook
Similarly, the office sector paints a promising picture, with stakeholders expressing confidence in leasing, supply, and rent parameters. A significant 69 per cent anticipate an improvement in office leasing, while 62 per cent foresee an uptick in office supply. Furthermore, 53 per cent expect office rents to climb, signalling robust performance in the near term.
Stakeholders’ optimism extends to the broader economic landscape, with 71 per cent expressing an increase in expectations regarding economic growth momentum. Additionally, 57 per cent anticipate a rise in funding availability, further boosted by a cumulative foreign direct investment (FDI) inflow of $15.34 billion between April and September 2023.
Stakeholders anticipate a sustained period of growth supported by a stable economic environment and favourable policy measures. With robust demand trends and significant infrastructure developments on the horizon, the sector appears poised for continued expansion in the mid to long term.
