Knight Frank-NAREDCO Real Estate Sentiment Index launched

Sentiments in the real estate sector have remained optimistic and touched new highs on the Knight Frank – NAREDCO Real Estate Sentiment Index Q1 2022. The flagship survey conducted quarterly by Knight Frank India and National Real Estate Development Council (NAREDCO) noted that Current Sentiment soared to a new high of 68 – indicating that most stakeholders experienced positive developments in their businesses in the last 6 months including the period of the survey. Importantly, the Future Sentiment score recorded at 75 was at a historical best. This score indicates the expectations of the developers/investors for the next six months from the time of the survey. The flagship survey is in its 32nd edition.?

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “The growth in the residential market has been impressive, elevating the sentiments of the entire sector. As most companies start calling their staff back to work, office space demand has also been growing steadily. The buoyancy in stakeholders’ take on the sector reflects positively in both the Current and Future Sentiment Scores. However, geo- political tensions impacting crude oil prices, are leading to a rise in inflation in the Indian market, which can impact demand from end users. The scenario is further complicated with supply chain disruptions, rise in input cost and an impending interest rate hike, all of which need to be watched carefully in the near future.”

Rajan Bandelkar, President, NAREDCO India and Director of Raunak Group said, “Amidst the geopolitical tensions and a slow economy witnessed over the past few months, the real estate sector in India remained impacted during the first quarter of the year. A result of the global uncertainties - a rise in the cost of raw materials such as steel, cement etc - is a concern for the sector. However, these concerns will likely get mitigated in the next few quarters. The gradual rise in sales across regions and the opening of offices all over the country, along with current occupier interest in office leasing, will contribute significantly to the expected strong recovery and boost consumer sentiments. As seen in the current survey, the sentiment score has increased during the first three months. However, the situation with respect to the supply chains of raw materials may prolong in the near term. Hence, the development strategy should focus on establishing uninterrupted supply chains and faster project deliveries. Such a strategy will help the sector in achieving growth. There is already a positive outlook for Indian real estate in the next six months as the country's evolving urban landscape will continue to fuel the housing and office space demand.”