Mon, Jul, 2022

Despite Interest Rate hikes, the mood of the real estate sector remains optimistic

Sentiments in the real estate sector have remained optimistic despite the current sentiment moderated from the previous quarter’s all-time high amidst a rapidly changing economic scenario

Despite the rising cost pressures and home loans becoming expensive, the optimism amongst developers is on the account of a strong demand trend from home buyers.

As per the Knight Frank-NAREDCO Real Estate Sentiment Index Q2 (April-June 2022), the current sentiment score has moderated to 62 from the record 68 reported in January-March.

The sentiment index is based on a survey of supply-side stakeholders like developers, investors, and financial institutions. A score of above 50 indicates ‘optimism’ in sentiments, a score of 50 means the sentiment is ‘same’ or ‘neutral’. A score below 50 indicates ‘pessimism’.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “Over the last 8- 10 quarters, it has been firmly established that there is a strong latent demand in the residential sector which, when supported by right prices and schemes, will convert to sales.

The most important aspect is the growth of the commercial office sector, which is heavily affected by the pandemic. However, the office sector is booming with a strong resurgence in the last three to four quarters, supported by strong economic growth, increased employment, and a return to office trends.

Rajan Bandelkar, President of NAREDCO and Director of Raunak Group, said: “India’s real estate sector is one of the few glorious spots in the world economy. The industry is doing well and has been stable for the last few quarters. While macroeconomic scenarios and global order are cautious, strong fundamentals in the Indian economy and real estate sector continue to inspire various stakeholders, including Developers, Investors & End Users.

With the government focusing on monetary tightening and economic reforms, we can expect a more robust real estate sector in the future.

Source: News from Economic Times & Financial Express

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