The flagship survey, which is in its 32nd edition, was conducted quarterly by Knight Frank India and the National Real Estate Development Council (NAREDCO).
The current sentiment index of real estate industry stakeholders, compiled after a survey conducted by Knight Frank and NAREDCO, rides high on the back of real sustainable home buying demand, and low interest rates for galvanizing end-users for home ownership. Niranjan Hiranandani, Vice Chairman of Naredco and Founder-cum-Managing Director of Hiranandani Group said that investor interest has increased.
“While the current scenario appears to be in a positive light, future sentiment reflects cautious optimism among industry stakeholders in the wake of global unrest and domestic adversities. Rising raw material costs have resulted in increase in input costs, record-high crude Oil price is pegged to swing between $90-$110, projected hike in US Fed interest rate, geopolitical turmoil, withdrawal of stamp duty waiver, additional 1 per cent metro cess hike in the backdrop of ready reckoner rates There are challenges facing the market, Hiranandani said.
As per the ‘Real Estate Sentiment Index Q1 2022’ survey conducted by the two entities, the sentiment in the real estate sector remains optimistic and touched new highs.
The flagship survey, which is in its 32nd edition, conducted quarterly by Knight Frank India and National Real Estate Development Council (NAREDCO), noted that the current sentiment has hit a new high of 68 – This shows that most of the stakeholders have experienced positive developments in their sector. Turnover in the last six months including the period of the survey. Importantly, given a firm economic outlook and continued demand for real estate space across asset classes, the Futures Sentiment Score recorded at 75 is at its all-time best.
The removal of all COVID-19 restrictions by the government has further fueled the sentiments. The current sentiment score increased from 65 in Q4 2021 to 68 in Q1 2022 as the last six months turned positive for growth for most real estate stakeholders. As the Indian economy navigated the third wave in the face of war uncertainties in Europe, the real estate sector’s momentum remained unabated, especially in the residential segment.
The commercial real estate sectors also saw growth after the end of the pandemic. While sentiments have been positive for the past two quarters, this is the best score in the history of the major survey. When asked about the economic outlook for India during the survey, 85 per cent of the respondents expected the overall economic momentum to improve over the next six months. In terms of credit availability outlook, 66 per cent of the respondents expect available funds to increase over the next six months, while 29 per cent expect the same to remain the same during this period.