Realty Sentiment on a Record High
Torbit Realty- May 12, 2024
Amidst a robust economy, healthy demand-supply dynamics, and unhindered growth of the sector, the real estate sentiment index is mirroring the upsurge.? ?
According to a recent? NATIONAL REAL ESTATE DEVELOPMENT COUNCIL (NAREDCO) - Knight Frank Real Estate Sentiment Index Q1 2024 (January – March) report, there is an unprecedented surge in market confidence amongst the supply side of real estate, marking a significant milestone in the sector. The Current Sentiment Index Score has soared to 72, ascending from last quarter’s 69, and setting a decadal high mark.
Driven by a strong domesticeconomy, the Future Sentiment Score??also saw an uplift, climbing? from 70 in Q42023 to 73 in Q1 2024.??This positive trajectory reflects stakeholders’ sustained optimism regarding the Indian economy and the enduring demand in the real estate market.
The residential market outlook in Q1 2024 is particularly promising, with 82 percent? of respondents anticipating a rise in residential prices. Similarly, the office market outlook remains buoyant, with stakeholders confident in the performance across leasing, supply, and rent over the next six months.
The quarterly NAREDCO- Knight Frank report provides a comprehensive analysis, through a primary survey, of current and future sentiments in the real estate sector, considering the economic climate and funding availability as perceived by supply-side stakeholders and financial institutions. A score of 50 indicates neutrality, scores above 50 signal positive sentiment, and scores below 50 denote negative sentiment.
Source: Knight Frank India
Sentiments of Developers and Non-Developers Inch Up further in the Optimistic Zone
The Developer Future Sentiment Score scaled up from 68 in Q4 2023 to 71 in Q1 2024. With strong buyer sentiment for property and the Reserve Bank of India’s (RBI) consistent policy on the repo rate for over a year, real estate developers remain optimistic about sector growth over the next six months.
Meanwhile, the Non-Developer Future Sentiment Score, which includes banks, financial institutions, and private equity funds, remained stable at 73 across Q4 2023 and Q1 2024. Although institutional investors have maintained a cautious stance, their confidence in the Indian economy has notably increased during this period.
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According to Hari Babu, President Naredco, as stakeholders demonstrate unwavering optimism , driven by the government’s commitment to aggressive economic growth , India maintains stability and offers fertile ground for real estate growth. The highest recorded Current Sentiment Index underscores notable trends with significant upsurges in new launches, sales and prices.???
Residential market outlook reflects enhancement in sales and launches
In Q1 2024, the residential market outlook reflects enhanced optimism on parameters of residential sales and launches, as stakeholders remain confident of the sustained demand momentum to drive activity in the market.As many as 73 percent respondents expect residential sales to go up in next 6 months against 65 percent in the previous quarter. The positive homebuyer sentiment and stability in home loan interest rate has led stakeholders to expect that growth in demand will prevail in the residential sectorover the next 6 months. Eighty percent respondents opine that residential launches will improve while 82 percent expect residential prices to increase.
Strong Future Outlook?for Residential Market
Q1 2024Residential SalesResidential LaunchesResidential PricesIncrease73%80%82%
Same15%8%18%
Decrease12%12%0%
Read here is Knight Frank report on Torbit Realty: https://bit.ly/4bMJXy7