Real Estate Sector The ongoing boom in may slow down. In fact, there has been a decline in the sentiment index of investors and buyers. Real estate consultant Knight Frank and the apex body of the real estate sector, National Real Estate Development Council (NAREDCO), have released the sentiment index for the second (April-June) quarter of 2024. According to the ‘Knight Frank-NAREDCO Real Estate Sentiment Index Q2 2024’, the current sentiment fell from its record high of 72 points in the first quarter of 2024 to 65 points. Future sentiment also weakened from 73 points to 65 points. The property market runs on sentiment. In such a situation, weakening of sentiment may reduce the demand for property in the realty market. In a survey conducted by Knight Frank-NAREDCO, most people believe that the launch of new houses and their prices may increase in the next 6 months.
Market position still strong
Knight Frank India Chairman and Managing Director Shishir Baijal said that the current and future sentiment at 65 (points) is still positive. This recent decline should not be a cause of concern as it only indicates a shift towards cautious optimism in the real estate sector. He said that the economy remains positive and stability is being seen in key indicators. It also remains combative towards global geopolitical developments. A sentiment index score of 50 points indicates a neutral outlook or status quo. A score above 50 indicates positive sentiment and a score below 50 indicates negative sentiment.
outlook remains positive
G Hari Babu, National President, NAREDCO said, “The second quarter of 2024 presents a resilient and optimistic Indian picture of the Indian real estate sector. While there has been a slight adjustment in the sentiment, the overall outlook remains positive. This shift reflects a more cautious outlook in light of recent political and budgetary uncertainties. Despite these adjustments, there remains strong confidence in the future of the sector. There continues to be significant activity in the residential and office market, indicating continued growth and opportunity. Other key stakeholders, including developers, banks and financial institutions, maintain a positive outlook. This suggests that even though there are short-term challenges, the sector is well positioned to adapt and thrive. The continued optimism and activity in the market highlights the sector’s ability to maintain its momentum and grow even amid changing conditions.”
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