Current Sentiment Index Score

Tue, 05/21/2024 - 10:43

Author: JLL



According to a survey by the Knight Frank - NAREDCO Real Estate Sentiments Inder Q1 2024 (Jan-March'24) there has been an increase in confidence was seen in both the office and residential markets

The report states that the post pandemic momentum, stable economy and higher transaction volumes were the top contributors to the real estate market boom in India

The Current Sentiment Index Score has reached a record-breaking 72, up from 69 the previous quarter. Future Sentiment score increased from 70 in Q4 2023 to 73 in Q1 2024, driven by a robust domestic economy.

In Q1 2024, the Developer Future Sentiment Score was 72, up from 68 in Q4 2023. It further stated that from Q1 2023 to Q1 2024, the volume of sales of residential units and office transactions climbed by 9% and 43%, respectively, on a year-over-year basis.

It went on to say that roughly 82% of respondents thought home prices will rise. "The outlook for the residential market in Q1 2024 appears to be very optimistic with an 82 percent response rate for an expected rise in residential prices."

Eighty percent of survey participants predicted better residential launches in the upcoming six months, while seventy-three percent predicted higher residential sales, up from sixty-five percent in the previous quarter.

The analysis highlighted regional trends in the real estate industry and stated that, with the exception of the north, all other zones showed significant confidence in the industry's performance over the following six months. "Despite a blip in the North zone's future sentiment score for the first quarter of 2024, it has remained in the optimistic zone."

Hari Babu, President-NAREDCO, said, "Stakeholders are exhibiting an inclination towards the expansion of the Indian real estate sector as they foresee a sustained consumer demand based on the Indian economy's robust trajectory in the forthcoming months."

Shishir Baijal, Chairman and Managing Director, of Knight Frank India, said, "The stakeholders' expectations of increased economic momentum and funding availability in the coming months reaffirm the positive sentiment prevailing in the real estate sector."

"The first quarter of 2024 witnessed a surge in confidence across residential and office markets, driven by factors such as stable economic fundamentals, sustained post-pandemic momentum, and increased transaction volumes," he further added.

Additionally, the report also states that 68% of participants in Q1 said that they had higher expectations for economy progress. It is anticipated that corporate and consumer optimism would increase even more further as long as India's economy remains stable.