2023-05-07-莱坊-REAL_ESTATE_SENTIMENT_INDEX_Q1_JANUARY_–_MARCH_2023_10页_1mb

Knight Frank-NAREDCO Real Estate Sentiment Index Q1 2023 Summary

Introduction

The 36th edition of the Knight Frank-NAREDCO Real Estate Sentiment Index for Q1 2023 (January-March 2023) gauges the perceptions and expectations of industry stakeholders regarding the real estate market. It is based on a quarterly survey of supply-side stakeholders, including developers and non-developers such as banks, NBFCs, and PE funds.

Key Findings

• Current Sentiment Index: The score decreased from 59 in Q4 2022 to 57 in Q1 2023, remaining in the optimistic zone despite global economic uncertainties. India's macroeconomic resilience, including controlled inflation and an RBI pause in interest rate hikes, supported positive sentiment.
• Future Sentiment Index: The score rose from 58 in Q4 2022 to 61 in Q1 2023, indicating sustained optimism for the next six months. Factors include institutional confidence in India's business resilience and improved consumer confidence.
• Regional Insights:
  • Northern India showed the highest increase in future stakeholder optimism (score 61).
  • Southern and Eastern regions also saw significant improvements (scores 62-69), while the West experienced a slight decline.
• Residential Market: Expected growth in sales, launches, and pricing, driven by steady demand and favorable funding conditions. Banks offered special rates amid higher interest rates.
• Office Market: Optimism for office leasing and rents, attributed to strong demand from sectors like BFSI and engineering. New supply and leasing projections reflect positive outlooks.
• Economic and Funding Outlook: Improved economic momentum and funding availability remain key drivers. Non-developer stakeholders, including financial institutions, showed increasing optimism.
• Overall Outlook: Despite global slowdown risks, stakeholders remain bullish on India's real estate sector due to macroeconomic stability.

Conclusions

India's real estate market demonstrates resilience and a positive outlook for the next six months, underpinned by macroeconomic stability, institutional confidence, and strong demand in residential and office segments. Stakeholders are watchful on funding availability but remain optimistic overall.