Real Estate Sector Sees Cautious Optimism Among Developers and Financial Institutions
Despite a slight dip in sentiment scores, the real estate sector remains optimistic, driven by growth in residential and office markets.
Real EstatePropertyDevelopersInvestorsFinancial InstitutionsReal EstateAug 14, 2024
The current sentiment index score has moderated to 65 from its all-time high of 72 in Q1, 2024. The future sentiment score declined to 65 from 73. This recalibration may be attributed to anticipatory caution around potential macroeconomic developments, including fiscal policies and geopolitical events, that could influence market confidence.
Despite this decline, the sentiment remains in positive territory, showcasing the sector's resilience with notable activity in residential and office markets. The future outlook for the housing market remains in optimistic territory, while all stakeholders have adopted a cautious outlook for the next six months.
In this quarter’s survey, 51% of the respondents expect residential sales to increase in the next six months as compared to 73% in the last quarter. In Q2 2024, 61% of survey respondents were of the opinion that residential launches will improve in the next six months. As many as 63% of the survey respondents in Q2 2024 expect residential prices to increase in the next six months.
Developers, investors confident about office market growth
The office outlook exhibited buoyancy on leasing and supply parameters as survey respondents remained confident about this sector in the next six months. Stakeholders opined that demand in India’s office market will bolster in the next six months and give a fillip to new supply as well.
In Q2 2024, 63% of survey respondents expect office leasing to improve in the next six months, driven by positive business sentiments and economic recovery. As many as 47% of respondents predict an increase in office supply, indicating confidence in continued sector growth.
Frequently Asked Questions
What is the current sentiment score for the real estate sector?
The current sentiment score is 65, down from its all-time high of 72 in Q1, 2024.
What is the future sentiment score for the real estate sector?
The future sentiment score is 65, down from 73 in Q1, 2024.
What is the outlook for the housing market in the next six months?
The outlook remains optimistic, with 51% of respondents expecting residential sales to increase in the next six months.
What is the outlook for the office market in the next six months?
The outlook is positive, with 63% of respondents expecting office leasing to improve in the next six months.
What is the reason for the decline in sentiment scores?
The decline is attributed to anticipatory caution around potential macroeconomic developments, including fiscal policies and geopolitical events, that could influence market confidence.
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