Indian Economy News

Optimism in real estate industry stakeholders highest in 10 years: Report

In the first quarter of 2024, optimism among Indian real estate stakeholders reached a decadal high, driven by stable economic fundamentals, sustained post-pandemic momentum, and increased transaction volumes, according to the Knight Frank-NAREDCO Real Estate Sentiment Index Q1 2024 report. The "Current Sentiment Index Score" climbed to 72 from 69 in the previous quarter, indicating a robust positive outlook. The report highlights that the residential market is the main driver of this optimism, with 82% of respondents expecting residential prices to rise and 73% anticipating increased sales in the next six months. Additionally, 80% of respondents foresee a rise in residential launches.

The office market also showed significant optimism, albeit slightly lower than the residential sector. In the first quarter of 2024, 74% of respondents expected office leasing to improve, up from 69% in the previous quarter, and office leasing saw a 43% YoY growth. Furthermore, 65% of respondents anticipated an increase in office rents, a rise from 53% in the previous quarter, reflecting confidence driven by India's stable economy and post-pandemic recovery. However, optimism regarding an increase in office supply decreased slightly from 62% to 58%.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.