The Indian real estate sector saw a jump in sentiment between October and December 2023, according to the Knight Frank-NAREDCO Real Estate Sentiment Index. In Q4, the current sentiment score during the quarter rose to 69 from 59 in the previous quarter.

This increase is attributed to India’s domestic economy continuing its growth trajectory, due to timely interventions by the RBI. The Current Sentiment Score is increasing because of the robust economic landscape, characterized by sustained GDP growth and a controlled economic policy environment. Confidence is growing among real estate stakeholders as Indian enterprises, including those in the real estate sector, anticipate further gains from the flourishing domestic economy, the report mentioned.

In 2023, office transactions in India increased by 15 per cent y-o-y, reaching a total absorption of 59.6 msf, approaching an all-time high. In the residential sector, even though the Reserve Bank of India’s 250 basis points saw an increase in policy rates from May 2022 to February 2023 and a steady rise in residential prices, the country saw a ten-year high in annual residential sales, growing by 5 per cent y-o-y to 3,29,097 units in 2023.

G. Hari Babu, President-NAREDCO, said, “There’s a significant positive shift in Q4 2023 sentiment. The Current Sentiment Index reflects increased confidence, attributed to a stable Indian economic environment. The Future Sentiment also points to optimism about India’s economic growth. Globally, with easing inflationary pressures, there is a balanced risk perspective. Regionally, all zones maintain an optimistic outlook. Developer sentiment shows resilience and non-developer entities express cautious optimism. The residential market sees increased confidence and the office sector anticipates growth. This signals a positive trajectory for the next six months.”

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