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In Q1 2024, optimism in the Indian real estate sector reaches a record high: Report

According to a recent research, in the first quarter of 2024, optimism among Indian real estate market stakeholders reached a record high.

Stable economic fundamentals, ongoing post-pandemic momentum, and higher transaction volumes were the causes of the growth.

As to the Knight Frank-NAREDCO Real Estate Sentiment Index Q1 2024 (January–March) report, the stakeholder’s current outlook as measured by the “Current Sentiment Index Score” compared to the previous six months was 72 during the quarter, marking the highest value in the recent decade.

Interestingly, it was 69 in the prior quarter.

At 50, the score represents neutrality; above 50, positive emotion is indicated; and below 50, negative sentiment is indicated.

It is ascertained by polling both non-developers and developers (including NBFCs) on various aspects such as finance availability, launches, and sales volume.

The analysis made clear that the housing market is the primary source of optimism. Approximately 82% of the participants anticipate an increase in house prices in the foreseeable future.

It noted, “Interestingly, this is the most optimistic level observed in the last ten years, with no response suggesting a possible price decline.”

Furthermore, 73% of respondents—up from 65% in the previous quarter—said they anticipated a further rise in home sales over the following six months.

More than 71% in Q4 2023, up to 80% of respondents said that residential launches are also projected to improve in the next six months.

The survey states that while the mood is not as positive as it is for homes, it is still quite positive for offices.

Compared to 69% in Q1 2024, 74% of respondents said they anticipated an improvement in office leasing over the coming six months.

The survey said that since the pandemic, there has been a notable surge in confidence for the office leasing market’s growth, with the largest percentage of respondents expressing a view for additional increase this quarter.

“India’s office market has maintained the momentum gained after the pandemic, with office leasing growing year over year in Q1 2024 by 43% over the same period last year.”

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