A joint survey conducted by Knight Frank and Naredco’s ‘Real Estate Sentiment Index Q3 2023 (July–September 2023) revealed that the current growth potential in the country is still optimistic. It was 63 in Q2 of this year, but decreased to 59 in Q3. It is argued that the reason for this is the sudden increase in conflicts in the Middle East. However, this will not be the case, and the future sentiment index is expected to increase from 64 to 65. It said that there will be a hopeful atmosphere for the next six months, along with the festival season. The Zonal Sentiment Score is mixed. Future sentiment scores increased in the South and West zones.
Here, the score has increased as conditions are positive and buyer sentiment is good. However, the future sentiment score remained stable in the North and East zones. At the same time, the developer future sentiment score increased to 66 in Q3 from 65 in Q2. This is the highest in the last 11 quarters. Realtors are hopeful that the real estate sector will improve in the next six months as interest rate hikes have been suspended. Moreover, since it is also the festival season, it is expected that more houses will be sold this time than last year. On the other hand, non-developer (banks, financial institutions, PE funds) future sentiment scores also increased. It was 62 in Q2 of 2023 and increased to 64 in Q3. It is noteworthy that this is the highest in the last six quarters.
The current quarter saw an increase in house sales and prices. According to the report, the reason for this is the sentiment of buyers to buy houses during the festive season. Sixty percent of the respondents said that house sales would increase in the next six months. Only 55 percent expressed this opinion in the last quarter. The reasons for this are factors such as a hold on interest rate hikes, rising income, and available financing options. Also, 63 percent are of the opinion that residential launches will also increase in the next six months. 62 percent had a similar opinion last quarter. Many developers are launching new projects during this festive season. 72 percent said that house prices will increase in the next six months. In the last quarter, there were 64 percent of people who had this opinion.
The office market in India continues to be strong. Most people believe that it will increase further in the next six months. He said that despite the threat of recession and economic conditions, there will be no impact on office market demand in our country. Leasing, supply, and rental income will increase significantly. In this quarter, 52 percent are of the opinion that office leasing will increase in the next six months. Also, 49 percent said office supply would improve. Most believe the segment will remain strong with strong leasing and new supply. Also, while 54 percent said that rents would increase in Q3, 45 percent said this in Q2.
This website uses cookies.