Builders, financial institutions bullish on realty sector growth; future sentiment score improves

New Delhi, Nov 29 (PTI) Real estate developers and financial institutions are upbeat about growth potential of the realty sector for the six months ending March next year, according to Knight Frank and NAREDCO.

Real estate consultant Knight Frank and realtors’ body NAREDCO on Friday released ‘Real Estate Sentiment Index Q3 2024 (July-September 2024)’, highlighting continued optimism in the realty sector.

There was a marginal dip in the current sentiment score, which stands at 64, down from 65 in the April-June period.

However, the future sentiment score improved to 67, up from 65 in the previous quarter, signalling rising confidence in the sector’s growth over the next six months.

The index captures the perceptions of supply-side stakeholders and financial institutions regarding the real estate sector, economic climate, and funding availability. A score of 50 indicates a neutral outlook; scores above 50 reflect positive sentiment, while those below 50 suggest a negative outlook.

Both current sentiment and future sentiment scores remain firmly in the positive zone, reflecting sustained trust in the industry’s long-term potential, the report said.

In the residential market, Knight Frank said the optimism prevails as 62 per cent of respondents anticipate a rise in residential prices, while 40 per cent foresee increased sales, and 38 per cent expect market stability.

Similarly, the office market outlook is buoyant, with strong confidence in key parameters such as leasing, supply, and rents, underscoring stakeholder optimism for robust performance in the coming months.