NEW DELHI, Aug 14: Real estate developers and financial institutions are cautiously optimistic about growth in the realty sector in the next six months amid geopolitical uncertainties, according to Knight Frank-NAREDCO.
Real estate consultant Knight Frank and realtors’ body NAREDCO released 41st edition of the Knight Frank-NAREDCO Real Estate Sentiment Index Q2, 2024 (April-June 2024) report, showing that the current sentiment index score has moderated to 65 from its all-time high of 72 in Q1, 2024. The future sentiment score declined to 65 from 73.
“While both current and future sentiments remain firmly in the positive zone suggesting a continued belief in the sector’s long-term prospects, the scores reflect a more tempered view on recent real estate growth, influenced by election and budget speculations,” Knight Frank said.
The adjustment in the future sentiment index reflects a positive yet more conservative outlook for the near term.
“This recalibration may be attributed to anticipatory caution around potential macroeconomic developments, including fiscal policies and geopolitical events, that could influence market confidence. Despite this decline, the sentiment remains in positive territory, showcasing the sector’s resilience with notable activity in residential and office markets,” the consultant said.
The quarterly report captures the current and future sentiments towards the real estate sector, the economic climate and funding availability as perceived by the supply-side stakeholders and financial institutions.
A score of 50 represents a neutral view or status quo; a score above 50 demonstrates a positive sentiment; and a score below 50 indicates a negative sentiment.
Knight Frank India Chairman and Managing Director Shishir Baijal said the current and future sentiment score of 65 is still in positive, however, this recent dip shouldn’t raise concerns as it simply indicates a shift toward cautious optimism in the real estate sector.
The economy remains positive with key indicators seeing stability while remaining resilient against the global geo-political developments, he added.
“With positive sentiment driven by sustained growth in residential and office markets, this adjustment highlights the sector’s careful and measured approach, ensuring continued stability amidst ongoing economic and political developments,” Baijal said. (PTI)
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