Mumbai: With the domestic economy continuing its upward trajectory and timely intervention by the Reserve Bank of India (RBI), real estate developers and financial institutions are bullish on the outlook for the real estate market over the next six months, with high demand sustaining its momentum. I predict that will happen. The 39th edition of the Knight Frank Naredco Real Estate Sentiment Index for the fourth quarter of 2023 (October-December 2023) has increased the current sentiment index score to 69 from 59 in the fourth quarter of 2022. I reported.
The quarterly Knight Frank Naredco report captures current and future sentiment on the real estate sector, economic conditions and financing availability as perceived by supply-side stakeholders such as developers and financial institutions. A score above 50 indicates the sentiment is “optimistic” and a score of 50 means the sentiment is “same” or “neutral.” A score below 50 indicates “pessimism.”
The forward sentiment score, which measures the outlook for stakeholders, has also increased from 65 in Q3 2023 to 70 in Q4 2023 due to general optimism about the Indian economy and sustained demand in the real estate sector. Rose.
In 2023, office transactions in India grew by 15% year-on-year, resulting in a total absorption area of 59.6 million sq ft, near an all-time high. Meanwhile, annual home sales rose 5% to 329,097 units, the highest level in 10 years. . This growth was despite the RBI increasing policy rates by 250 basis points from May 2022 to February 2023, and house prices steadily rising, the report said.
The Developer Future Sentiment Score scaled up from 66 in Q3 2023 to 68 in Q4 2023. The forward sentiment score for non-developers (including banks, financial institutions and PE funds) rose from 64 in Q3 2023 to 73 in Q4 2023. Investors, who had remained cautious in the past period, have increased their confidence in the Indian economy, the report said.
