The 42nd NAREDCO-Knight Frank Real Estate Sentiment Index for Q3 2024 offers a positive outlook for India’s real estate sector, despite a marginal dip in the Current Sentiment Score to 64 from Q2’s 65. Encouragingly, the Future Sentiment Score improved to 67, signalling stakeholders’ optimism about the sector’s growth over the next six months. Both scores remain well above the neutral mark of 50, reflecting sustained confidence in the sector’s resilience and long-term potential.
Residential and Office Markets Shine
The residential market continues to inspire optimism, with 62% of respondents expecting property price increases, and 40% anticipating higher sales volumes. The luxury housing segment remains a key growth driver, while 42% predict improved residential launches. In the commercial space, 76% of stakeholders foresee an uptick in office leasing activity, driven by corporate recovery and demand for premium spaces. Additionally, 73% anticipate rental growth, underlining the robustness of India’s office market amidst evolving corporate needs.
Stakeholder Confidence
The Developer Future Sentiment Score climbed from 61 in Q2 to 65 in Q3, reflecting growing confidence among developers leveraging strong sales momentum. Non-developers, including financial institutions and private equity funds, maintained a steady score of 68, reaffirming faith in structured real estate investments. A stable interest rate environment and a GDP growth projection of 7.2% for FY 2024-25 by the Reserve Bank of India further reinforce the sector’s appeal.
Sector Outlook
NAREDCO President Hari Babu highlighted the resilience of the real estate market, attributing the rise in future sentiment to sustained demand and investor confidence. While the survey indicated moderated optimism about India’s broader economic environment, 46% of respondents still expect improvement, and 47% anticipate better funding availability. These insights underscore the sector’s recovery and potential for steady growth in the coming quarters.
