Real Estate Outlook Remains Cautiously Optimistic, Says Report

2025-03-04 04:46:09

Cautious Optimism in Residential Sector, Office Market Outlook Stays Strong

The real estate sector in India remains cautiously optimistic amid global economic shifts, though sentiment has softened compared to the previous quarter, according to the Knight Frank–NAREDCO Real Estate Sentiment Index.

While confidence in the residential segment remains measured, the outlook for the office market continues to be robust.

The quarterly report assesses sentiment toward economic conditions, real estate growth, and funding availability, based on insights from developers and financial institutions.

Both current and future sentiment scores remain above the optimistic threshold of 50 but have declined from the previous quarter. The current sentiment index dipped to 59 from 64, reflecting a more measured approach.

Despite global economic uncertainties, the real estate sector is demonstrating resilience and steady growth, with a balanced mix of challenges and emerging opportunities, said Knight Frank India chairman and managing director Shishir Baijal.

In the residential sector, 59% of stakeholders expect property prices to rise, while 38% anticipate an increase in sales. Around 41% foresee a rise in new launches, while 28% predict stability.

NAREDCO President Hari Babu noted that the moderation in launches, sales, and pricing reflects prevailing market conditions. However, he emphasized the need for sustainable and affordable housing to meet evolving buyer demands.

Meanwhile, the office market remains a bright spot, with strong confidence in leasing, supply, and rental growth over the next six months.