coming months Will the property market continue to be bullish or will there be a recession? If you are also looking for the answer to this question then you can get it from the Real Estate Sentiment Index. Knight Frank and real estate sector body NAREDCO on Friday released the 'Real Sentiment Perception Index (July-September 2024)' report. According to this report, it has been mentioned that the bullish trend in the realty sector will continue. The real estate sentiment index declined marginally to 64 in the September quarter as against 65 in the April-June period. However, companies' sentiment regarding the future increased from 65 in the June quarter to 67. This is a sign of growing confidence in the sector's growth over the next six months. A level of 50 in the index indicates a neutral outlook while anything above 50 means a positive sentiment.
Indian real estate sector remains strong
NAREDCO Chairman G Hari Babu said the sentiment index 'reflects the strength of the Indian real estate sector amid global uncertainties.' He said RBI's GDP growth forecast of 7.2 per cent for 2024-25 and stable interest rate environment will further boost investor sentiment. As the sector continues to grow, it is essential that we address current challenges and take advantage of opportunities for continued growth. The index reflects the perceptions of supply side stakeholders and financial institutions about the real estate sector, economic environment and availability of financing. According to the report, both the current sentiment and future sentiment indices remain firmly in positive territory, reflecting confidence in the long-term potential of the industry.
Price will continue to rise
Knight Frank India said optimism prevails in the residential market as 62 per cent of participants expect prices to rise while 40 per cent expect sales to rise and 38 per cent expect market stability. Shishir Baijal, Chairman and Managing Director, Knight Frank India, said strong demand in high-end home sales and stable leases in commercial spaces underline the sector's strong performance. “Companies remain optimistic with improved sentiment this quarter. With strong economic fundamentals and a favorable market, the sector is well positioned for continued growth and opportunities,” he said.
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