Realtors, financial institutions optimistic about growth in real estate sector for next 6 months: Report
Real estate developers and financial institutions have become slightly more optimistic about the growth potential in the realty sector for the next six months on festive demand and the country's economic growth, according to Knight Frank-NAREDCO sentiment index. Real estate consultant Knight Frank and NAREDCO on Friday released their 'Real Estate Sentiment Index Q3 2023 (July-September 2023) report that captures the current and future sentiments towards the real estate sector, the economic climate and funding availability as perceived by the supply-side stakeholders and financial institutions.
A score of 50 represents a neutral view or status quo; a score above 50 demonstrates a positive sentiment; and a score below 50 indicates a negative sentiment.
The joint report stated that the current sentiment score has scaled down to 59 in September quarter from 63 in previous quarter due to sudden outbreak of conflict in Middle East and rising regional tensions between nations.
«The Future Sentiment Index witnessed a marginal uptick from 64 to 65 on the back of stakeholders' expectation of continued growth trajectory of Indian economy to support performance of real estate sector for the next six months with expected higher demand during the ongoing festive season,» the consultant said.
Easing consumer inflation and stable interest rate have given greater confidence to the supply-side stakeholders (real estate developers) and financial institutions (banks, NBFCs, PE funds etc.) towards India's real estate sector amid rising pressure of evolving global headwinds.
