Next six months are very important in real estate sector, good growth can be seen

New Delhi. Buying real estate is considered very important in India. This is the most important method of investment, through which people secure their future. The prospects of many property-related companies and financial institutions in the real estate sector are looking good in the next few months.

The expectations of financial institutions regarding the growth prospects of the real estate sector in the next six months have increased slightly. According to the Knight Frank NAREDCO sentiment index, the reason for this sentiment is the increase in demand during festivals and the economic growth of the country. Knight Frank, a consulting organization in the real estate sector, and NAREDCO, the leading body of real estate companies, have given this information.

He released the ‘Real Estate Sentiment Index in the Third Quarter of 2023’ report on Friday. The report is based on the opinion of real estate companies and financial institutions about the sector. The report reflects current and future perceptions of the real estate sector, economic environment and fund availability. In this report, a score of 50 indicates a neutral outlook or status quo, while a score above 50 indicates positive sentiment and a score below 50 indicates negative sentiment.

The joint report said that due to the sudden onset of conflict in West Asia and increasing regional tensions between the nations, the current sentiment score has declined from 63 in the June, 2023 quarter to 59 in the September quarter. “However, the future sentiment index saw a slight increase from 64 to 65,” the consultancy company said. This is due to the Indian economy’s growth expected to remain strong with expected good demand during the festive season, which is expected to provide momentum to the sector over the next six months.” Softening of retail inflation and stable interest rates amid growing pressure from global headwinds. The rate has given greater confidence to ‘real estate developers’ and financial institutions (banks, non-banking financial institutions etc.) in the sector.

“While the current sentiment index has seen a slight decline as a result of recent geopolitical instability, the strong future sentiment index reflects enduring confidence in the potential of the Indian real estate industry,” said Hari Babu, Chairman, NARDECO. Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “Despite the uncertain global economic environment caused by conflicts and high inflation in developed economies, India’s domestic economy appears to be strengthening. Improving near-term inflation sentiment and strong economic activity have improved consumer and business sentiment for all sectors, including real estate.