Real Estate Sentiment Climbs in Q4

Mumbai: With domestic economy continuing its upward trajectory and timely interventions by the Reserve Bank of India (RBI), real estate developers and financial institutions are bullish on their outlook for the property market for the next six months and expect the high demand to sustain its momentum. The 39th edition of the Knight Frank-NAREDCO Real Estate Sentiment Index for Q4 2023 (October-December 2023) reported that the Current Sentiment Index Score rose to 69 from 59 in Q4 2022.

“Confidence among real estate stakeholders has surged as Indian enterprises, including those in the real estate sector, anticipate further gains from a flourishing domestic economy,” said the report released on Sunday.

The quarterly Knight Frank-NAREDCO 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 like developers and financial institutions. A score of above 50 indicates 'optimism' in sentiments, a score of 50 means the sentiment is 'same' or 'neutral'. The score below 50 indicates 'pessimism'.

The Future Sentiment score, which indicates stakeholders' outlook, has also increased from 65 in Q3 2023 to 70 in Q4 2023, driven by general optimism about the Indian economy and sustained demand in the real estate sector.

In 2023, office transactions in India surged by 15 per cent YoY, resulting in a total absorption of 59.6 mn sq ft, approaching an all-time high while the annual residential sales grew to a ten-year high by 5 per cent to 329,097 Units. This growth was despite the RBI's 250 basis points increase in policy rates from May 2022 to February 2023 and a steady rise in residential prices, the report said

The Developer Future Sentiment Score scaled up from 66 in Q3 2023 to 68 in Q4 2023. The Non-Developer (which includes banks, financial institutions, PE funds) Future Sentiment Score rose from 64 in Q3 2023 to 73 in Q4 2023. The institutional investors that remained watchful in the past periods, exhibited enhanced confidence in the Indian economy, said the report.

( Source : Deccan Chronicle )
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