Real Estate Confidence Steady Amid Marginal Sentiment Dip

The latest NAREDCO-Knight Frank Real Estate Sentiment Index Q3 2024 highlights resilience in India’s real estate market, despite a slight decline in the Current Sentiment Score, which dropped to 64 from 65 in the previous quarter. Encouragingly, the Future Sentiment Score has climbed to 67 from 65, signifying growing optimism about the sector’s performance over the next six months. Both metrics remain firmly above the neutral threshold of 50, indicating enduring faith in the industry’s long-term potential.

Residential market sentiment remains buoyant, with 62% of stakeholders predicting a rise in property prices, driven by robust demand for luxury homes priced at ₹1 crore and above. Additionally, 42% expect an uptick in new residential launches, while 36% foresee market stability. Meanwhile, the office sector shows strong confidence, with 76% of respondents anticipating an improvement in leasing activity. Rising corporate demand is also expected to fuel rental growth, as 73% of stakeholders predict higher office rents in the near term.

From a sustainability perspective, the report underscores the importance of eco-friendly real estate practices to meet evolving urban challenges. Developers are increasingly prioritising energy-efficient designs, green certifications, and sustainable materials, ensuring long-term benefits for stakeholders and addressing pressing civic issues. The steady growth in the residential and commercial segments highlights the sector’s pivotal role in shaping environmentally conscious urban landscapes.

While 46% of stakeholders believe the economic scenario will improve, this represents slightly softened optimism compared to previous quarters. Funding availability expectations also saw a dip, with 47% forecasting increased capital flow compared to 51% earlier. However, stable interest rates and the RBI’s GDP projection of 7.2% for FY 2024-25 are expected to sustain investor confidence, paving the way for gradual yet sustainable growth in the real estate market.