The real estate market in India is showing a positive outlook, with 51 per cent of stakeholders predicting higher sales in the next six months. However, caution remains due to uncertainties such as upcoming budget impacts. The Knight Frank report indicates that 24 per cent expect stability, while 25 per cent anticipate a potential decrease in sales, reflecting a balanced yet cautious sentiment. Residential launches are expected to increase, with 61 per cent of respondents predicting a rise in demand. Pricing is also expected to rise by 63 per cent of stakeholders, while 36 per cent foresee stable prices, and a small minority predict a decline.
The National President of the National Real Estate Development Council (NAREDCO), G Hari Babu, highlighted the notable activity in the residential and office markets, signaling growth and opportunity. The positive outlook maintained by developers, banks, financial institutions, and other key stakeholders suggests that the sector is well-positioned to adapt and thrive amidst changing conditions. The office leasing market is also showing signs of a strong recovery, with 63 per cent of respondents predicting an increase in leasing activity, driven by positive business sentiments and economic revival.
The Future Sentiment Score, which measures stakeholders’ outlook over the next six months, saw adjustments across various regions. The North Zone remains optimistic, with a slightly decreased score from 65 to 63 in Q2 2024. The South Zone experienced a more significant drop from 76 to 65, while the East Zone saw a decrease from 77 to 65 due to the discontinuation of the 2 per cent stamp duty cut. The West Zone also saw moderation, with the score decreasing from 73 to 66. The Developer Future Sentiment Score decreased from 72 to 61, reflecting a more guarded approach, while the Non-Developer Future Sentiment Score moderated from 73 to 68, indicating stakeholders’ careful consideration of macroeconomic concerns.
Optimism in India’s broader economic scenario remains strong, with 59 per cent of respondents expecting an improvement. This reflects confidence in the country’s economic resilience. Shishir Baijal, Chairman and Managing Director of Knight Frank India Pvt Ltd, noted that various factors are playing out globally, with India benefiting from stable post-election conditions and robust domestic consumption. The global economic landscape remains resilient, with inflation rates aligning with central bank targets, enabling a more supportive monetary policy.
Although the Current Sentiment Score moderated from a high of 72 in Q1 2024 to 65 in Q2 2024, it still indicates optimism among stakeholders. The Future Sentiment Index also adjusted from 73 in Q1 2024 to 65 in Q2 2024, signaling a positive yet more conservative outlook for the near term. Despite macroeconomic uncertainties, stakeholders continue to show confidence in the resilience and adaptability of the real estate sector. Overall, the real estate market in India is poised for growth, supported by positive sentiments and ongoing activity in both residential and office markets.
