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India's real estate sector is regaining momentum, with increased optimism among developers and financial institutions, according to the NAREDCO-Knight Frank Real Estate Sentiment Index for April-June. The Current Sentiment Score rose to 56 from 54, while the Future Sentiment Score jumped to 61, ending a four-quarter decline. The rebound is driven by economic stability, lower inflation, strong GST collections, reduced interest rates, and growing demand in premium housing and office leasing, especially from GCCs and co-working operators. NAREDCO President Hari Babu and Knight Frank CMD Shishir Baijal emphasized the sector's resilience, improved liquidity, and its readiness for sustained growth in the coming months.
India's real estate sector is showing signs of renewed confidence, with developers and financial institutions expressing more optimism for growth in the coming six months. A recent report indicates that industry participants are now looking beyond short-term global challenges, relying on India's underlying economic strength, supportive government and monetary policies, and solid demand in key property segments. Advertisement
This positive shift is reflected in the latest 'Real Estate Sentiment Index' for the April-June quarter, prepared by NAREDCO (National Real Estate Development Council) and Knight Frank India. The Current Sentiment Score for the period modestly increased to 56, up from 54 in the preceding January-March quarter. This marks an end to a four-quarter downward trend. The Future Sentiment Score, which predicts the outlook for the next six months, climbed to 61 in April-June, up from 56 a quarter earlier. Scores above 50 signal a positive outlook.
The report also points to India's economic environment becoming more favorable for growth and investment. This is linked to lower inflation rates, strong Goods and Services Tax (GST) collections, and recent reductions in interest rates, all of which contribute to a more conducive business climate.
Hari Babu, President of NAREDCO, stated that the index shows renewed optimism in the sector. He added that this recovery is driven by steady office leasing, particularly by Global Capability Centers (GCCs) and flexible workspace operators, along with strong demand for premium housing.
Hari Babu also noted that developers' outlook has strengthened due to improved liquidity and lower borrowing costs. With record GST collections, a robust Purchasing Managers' Index (PMI), and easing monetary policies, India's real estate sector appears well-positioned for continued growth through the rest of this year.
Shishir Baijal, CMD of Knight Frank India, stated that the recovery in both current and future sentiment scores reflects the sector's ability to bounce back and adapt. This indicates a resilient market poised for stability and growth.
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