Sentiments for real estate sector remain bullish for next 6 months: Survey

The sentiment index for the real estate sector remained positive during the April-June period with an improvement from previous quarter while the outlook for the next six months is also bullish, according to Knight Frank India and NAREDCO survey.

In its 37th edition of the Real Estate Sentiment Index Q2 2023 (April-June), real estate consultant Knight Frank and industry body NAREDCO said that the current sentiment score has scaled up from the previous quarter's 57 to 63, in the optimistic zone.

"This is due to the continued resilience of the Indian economy amid a recessionary environment globally. The Current Sentiment Score signifies stakeholders' current outlook in comparison to the preceding six months," Knight Frank said.

During Q2 2023, the Future Sentiment Score rose from 61 in Q1 of 2023 to 64 in the optimistic territory as India's macroeconomic indicators remained firm, despite headwinds on some parameters, the consultant said.

The Real Estate Sentiment Index is based on a quarterly survey of key supply-side stakeholders which include developers and financial institutions, including banks, Non-Banking Financial Companies (NBFCs) and private equity (PE) funds.

A score of 50 represents a neutral view or status quo; a score above 50 demonstrates a positive sentiment; and a score below 50 indicates a negative sentiment.