In the 37th edition of the Real Estate Sentiment Index, a collaborative effort between Knight Frank India and the National Real Estate Development Council (NAREDCO), the real estate sector in India demonstrated a remarkable uptick in positivity throughout Q2 2023. This surge underscored heightened confidence in the sector, reflecting the nation's steady economic performance.
Manoj Gaur, CMD of Gaurs Group, remarked on the overwhelmingly positive sentiment in the NCR (National Capital Region), attributing it to esteemed developers renowned for on-time project completion, delivered amenities, and construction excellence. This sentiment was further bolstered by the Reserve Bank of India's recent decision to pause interest rate hikes, the country's consistent economic trajectory, growth forecasts, and a post-Covid inclination towards homeownership. Gaur also noted a shift in preferences towards more spacious residences with comprehensive in-complex facilities.
According to the report, the Current Sentiment Index Score exhibited a noteworthy escalation from 57 to 63 between April and June 2023. This upsurge signifies a considerable surge in optimism compared to the preceding six months. Notably, a score surpassing 50 signifies optimism, 50 indicates a neutral outlook, and a value below 50 suggests pessimism.
Amit Modi, Director of County Group, expresses satisfaction in driving the rise in optimism and credits it to supportive policies and consistent demand in residential and office leasing. Modi notes that this surge aligns with the real estate sector's focus on customer satisfaction, predicting a sustained rise in sentiment driven by the country's growth narrative.
Rajjath Goel, Managing Director of MRG Group, emphasizes the enduring optimism in India's real estate domain reflected by the Future Sentiment Score. This outlook signals stakeholders' collective belief that positivity will surpass itself in the upcoming months. Goel highlights decreasing unsold inventories, the Reserve Bank of India's decision to cease interest rate hikes, robust demand for luxury properties, and the projection of this trend persisting through the year.
The Future Sentiment Score experienced a rise from 61 in Q1 2023 to 64 in the subsequent quarter. The index's survey unveiled that 55 percent of respondents anticipate a surge in residential sales over the ensuing six months, up from 48 percent in the prior quarter.
Ashwinder R Singh, CEO-Residential at Bhartiya Urban, attributes the boost in confidence to the Reserve Bank of India's cessation of interest rate hikes. This move has not only reinvigorated investor interest but also maintained high demand among end-users. Singh underscores proactive policies by both Central and state governments, along with infrastructural enhancements, as contributors to this positive shift.
Office leasing is poised for sustained growth in the near future. Experts predict robust office leasing due to heightened demand from businesses, co-working space providers, and international corporations establishing their presence in the nation.
Cautious optimism prevails for the upcoming six months, fueled by India's consistent economic performance and the expectation of further affirmative developments. With the evolving real estate landscape, stakeholders in the Indian market envision a prosperous sector in the foreseeable future.
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