A recent joint survey by Knight Frank India and NAREDCO highlights an optimistic outlook for the residential real estate market. As per the survey, the demand for buying home has been strong in Q1 2022 and 80% of the respondents in this survey expect that sales of residential real estate are going to increase in the next six months.
Even the outlook for Indian office market has also enhanced during this period on the back of a successful vaccination drive and the improving business environment. The respondents have stated that office leasing will also achieve a healthy growth n the next six months.
CMD of Knight Frank India Shishir Baijal said that the residential market growth has been impressive and it has elevated the sentiments of the entire real estate sector. He added that office space demand has also been growing as the companies have steadily started calling their staff back to work.
NAREDCO India President, Rajan Bandelkar who is also Director, Raunak Group, has highlighted the key concerns of the real estate sector while commenting on this survey. He said as seen in the current survey the sentiment score during the first three months has increased, however, raw materials supply chains may prolong in the near term and so a development strategy is required to focus on establishing uninterrupted supply chains while ensuring faster project deliveries at the same time for the real estate sector to achieve growth. He noted that the country’s evolving urban landscape will continue to strengthen the demand in housing and office space segments.
As per the survey, the most optimistic market has been the South Zone where the Future Sentiment Score has risen from 64 in Q4 2021 to 66 in Q1 2022, while the Future Sentiment score for the North Zone has also inched up substantially from 57 in Q4 2021 to 65 in Q1 2022. The West and East Zones have also maintained their optimistic position. However, a marginal fall in sentiment index has been witnesses in East.