Regarding residential sales, around 51% of respondents anticipate an increase over the next six months. This marks a decline from 73% in the previous quarter, indicating a more cautious expectation among market participants. The dip in confidence highlights a shift in sentiment, influenced by broader economic and political uncertainties.
In contrast, the sentiment regarding residential launches has shown a more positive trend. In the second quarter of 2024, 61% of survey respondents expect an improvement in residential launches over the coming months. This figure represents a slight increase from the previous quarter, suggesting a gradual recovery in new project initiations.
Moderated yet optimistic outlook for residential market
Q2 2024 |
Residential Sales |
Residential Launches |
Residential Prices |
Increase |
51% |
61% |
63% |
Same |
24% |
20% |
36% |
Decrease |
25% |
19% |
1% |
Source: Knight Frank Research
Overall, while the residential market continues to show positive long-term prospects, the current cautious outlook underscores a period of watchfulness and strategic planning among stakeholders. The evolving economic landscape and upcoming budget announcements are expected to play a significant role in shaping market dynamics in the near future.
Investor sentiment in realty sector moderated in April-June: Report
The Knight Frank-NAREDCO Real Estate Sentiment Index for Q2 2024 indicates a moderated Current Sentiment Index Score of 65, down from the previous quarter’s peak of 72. This dip suggests a shift to a more measured outlook among stakeholders, despite the sector’s continued resilience and positive long-term prospects.The Future Sentiment Index also adjusted, falling from 73 in Q1 2024 to 65 in Q2 2024, the report said. This recalibration highlights a more cautious stance among stakeholders, prompted by uncertainties related to macroeconomic factors, fiscal policies, and geopolitical tensions. Nevertheless, the index remains firmly in positive territory, underscoring confidence in the sector’s robustness.Hari Babu, President-NAREDCO, said, “In Q2 2024, the Knight Frank NAREDCO Real Estate Sentiment Survey paints a picture of a resilient and optimistic Indian real estate sector. Although there has been a slight adjustment in sentiment, the overall outlook remains positive. This shift reflects a more cautious approach in light of recent political and budget-related uncertainties. Despite these adjustments, confidence in the sector’s future is strong. The residential and office markets continue to show notable activity, signalling ongoing growth and opportunity. Developers and other key stakeholders, including banks and financial institutions, are maintaining a positive outlook. This suggests that while there may be short-term challenges, the sector is well-positioned to adapt and thrive. The continued optimism and activity in the market highlight the sector’s ability to sustain its momentum and drive forward, even amidst changing conditions.”