There is a possibility of a slowdown in the pace of the Indian economy, which is on a growth path. The report shows that there has been a decline in the sentiment index among home buyers and investors. Amid global tension, real estate developers and financial institutions are quite positive about the growth of the real estate sector in the next six months. Real estate consultant Knight Frank and real estate sector regulator National Real Estate Development Council (NAREDCO) have released an index for the second quarter (April-June) of 2024.
What is the significance of this report?
According to the Knight Frank-NAREDCO Real Estate Sentiment Index for Q2 2024, the current sentiment has declined to 65 points from its all-time high of 72 points in Q1 2024. The perception of the future has also weakened from 73 points to 65 points. Let us tell you that if the number is 50 in the index, it means that stability can be seen in demand. If the number is greater than 50 then there is a possibility of demand increasing and if it is less than 50 then there is a possibility of demand decreasing.
Knight Frank said that both current and future sentiment remain in positive territory, reflecting continued confidence in the sector’s long-term prospects. These figures reflect a more subdued outlook on property growth recently, which has been influenced by election and budget speculation.
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That’s why there is positivity in the sector
The adjustment in future sentiment reflects a positive but more conservative outlook for the near future. The real estate consultancy firm stated that despite this drop, sentiment remains in the positive zone, reflecting the resurgence of the sector with notable activity in the residential and office markets.
Knight Frank India Chairman and Managing Director Shishir Baijal said the current and future sentiment of 65 (points) remains positive. This recent drop should not be a cause for concern as it only indicates a shift towards cautious optimism in the real estate sector. He said the economy remains positive and stability is seen in key indicators. He also remains militant in the face of global geopolitical developments.
I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,
