Here’s good news for the real estate market! A recent report shows confidence is high. The score that measures current sentiment in the industry jumped to 72 in the first three months of this year. The positive outlook is due to the economic recovery post-pandemic. The economy has improved significantly, showing unprecedented growth compared to the last decade and marked improvement over the previous quarter.
According to market sources, from January to March of this year, sentiment among financial institutions and real estate developers was at an all-time high. In the first quarter of 2024, the Current Sentiment Index Score increased by 3 points, reaching 72 from the previous quarter’s 69. This rise is attributed to the strong economic environment within the sector.
People’s optimism for the real estate industry is growing! The score that measures future sentiment went up to 73 in the first quarter of 2024. That’s a bump from 70 just the quarter before. This suggests that people in the industry are staying optimistic and expecting strong demand to continue for the next six months.
There’s a mixed bag of sentiments about the future of real estate depending on where you look in India. In most regions, the sentiment is optimistic as per the latest report where the Future Sentiment Score has increased in all except the Northern region. Even though North India still holds a positive outlook above 50, it fell below an average rating of 65 compared to a high 78 during the last period reviewed.
The office segment is closely tied to global economic health, which has been experiencing a slowdown recently. This has impacted India’s IT services sector, but overall demand for office space leasing in India has remained robust thanks to strong domestic economic growth. There was a 43 percent year-on-year growth in the first quarter of 2024 compared to the same period last year.
According to the latest survey, 74% of respondents in the office sector expect an improvement in leasing in the next six months, indicating a growing sense of optimism about the future of office space leasing, up from 69% in the previous quarter.
However, only 58 percent of the survey respondents during the period under review said that they expect a rise in office supply over the next 6 months, as opposed to 62 percent in Q4 2023. According to industry sources, in Q1 2024, compared to the previous quarter, office supply decreased in Mumbai, NCR, Chennai and Ahmedabad. Which reflects the stakeholders treading cautiously.