May 20 (Punjab Khabarnama) : Companies and financial institutions involved in real estate business are excited about the growth in the Indian real estate sector. With the sentiment index improving in the January-March quarter, there are a lot of expectations for the next six months. This assessment has been presented in a report. According to a joint report by real estate consultant Knight Frank and industry body NAREDCO released on Monday, high economic growth and strong property demand are the key factors improving their sentiments.
The Real Estate Sentiment Index (January-March) report is based on a survey conducted among supply-side stakeholders. This shows that there has been an unprecedented increase in market confidence among the supply side of the industry. The current sentiment index was 69 in the October-December, 2023 quarter but it improved to 72 in the March quarter. The index of future sentiment also increased to 73 in the last quarter whereas it was 70 in the December quarter.
“This positive growth path reflects the continued optimism of stakeholders regarding the Indian economy and sustainable demand in the real estate market,” the advisory firm said. According to the report, the outlook for the residential market is particularly promising. About 82 percent of the participants feared an increase in housing prices. Similarly, the outlook for the office market also remains bullish, with stakeholders confident of the performance of the leasing, supply and rental sector over the next six months.
Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “The significant increase in the current sentiment index score within the optimistic zone is driven by India’s strong economic outlook. There has been increased confidence among stakeholders with Indian enterprises, including the real estate sector.” NAREDCO Chairman Hari Babu said the report presents a positive outlook for the Indian real estate sector.
