India's realty market robust amid global slump: Knight Frank-Naredco Real Estate Sentiment Index

economictimes.indiatimes.com:

Real estate industry stakeholders including developers, financiers and institutional investors continue to be optimistic about the business environment over the next six months backed by the Indian economy's resilience despite a recessionary environment globally, showed Knight Frank-Naredco Real Estate Sentiment Index for April-June 2023. The performance of both office and residential property markets is expected to be robust as underlying demand remains firm, helping the future sentiment score rise to optimistic territory at 64 in the June quarter from 61 in the previous quarter.

The current sentiment score also scaled up to 63 in the optimistic zone from 57 in the March quarter. The institutional investors, who remained watchful in the past periods, indicated enhanced confidence in the Indian economy.

The pause in the interest rate hike cycle by the Reserve Bank of India has also influenced them positively. The stakeholders' sentiment towards funding availability too improved as India's firm macroeconomic indicators despite headwinds on some parameters have ensured a powerful appeal for investments from foreign funds.

«Amidst turbulent global developments, India's economy has firmly positioned itself as one of the world's fastest-growing large economies, which has significantly influenced stakeholders' sentiments in June quarter,» said Shishir Baijal, CMD, Knight Frank India. According to him, despite facing high inflation in developed markets, the Indian economy demonstrated resilience and bounced back, instilling confidence in stakeholders regarding the stability of the domestic economic climate and real estate sector performance over the next six months.