Positive Outlook for Indian Real Estate Market Despite Caution, Says Knight Frank Report
The residential market in India is looking up, with 51% of stakeholders expecting higher sales in the next six months, according to a report by Knight Frank. However, some remain cautious due to budget impacts and uncertainties. While 24% expect stability, 25% predict a potential decrease in sales.
Residential Launches and Pricing
About 61% of stakeholders foresee an increase in residential launches, indicating continued demand. Meanwhile, 63% expect prices to rise, though 36% anticipate stable prices.
Office Leasing Market
The office leasing market is also recovering, with 63% predicting increased leasing activity. New office supply is expected to rise by 47% of respondents, and 67% expect office rents to go up.
Regional Sentiment Scores
The Future Sentiment Score, which measures outlook over the next six months, saw a slight decrease in various regions. The North Zone score dropped from 65 to 63, the South Zone from 76 to 65, the East Zone from 77 to 65, and the West Zone from 73 to 66.
Economic Outlook
Optimism in India’s broader economic scenario remains strong, with 59% expecting improvement. Shishir Baijal, Chairman and Managing Director of Knight Frank India, noted that India’s GDP growth rate is projected at 7.2% for FY 2025, positioning it as one of the fastest-growing large economies globally.
Despite some caution, the overall sentiment remains positive, reflecting confidence in the sector’s resilience and adaptability.
Doubts Revealed
Knight Frank -: Knight Frank is a company that provides advice and services related to buying, selling, and managing properties. They are experts in real estate.
stakeholders -: Stakeholders are people or groups who have an interest in a particular project or business. In this case, they are people involved in the real estate market.
residential market -: The residential market refers to the buying and selling of homes and apartments where people live.
office leasing market -: The office leasing market is about renting out office spaces where companies and businesses can work.
GDP growth -: GDP growth means the increase in the value of all goods and services produced in a country. It shows how well the economy is doing.
FY 2025 -: FY 2025 stands for Fiscal Year 2025, which is a one-year period used for accounting and budget purposes. It usually starts on April 1, 2024, and ends on March 31, 2025, in India.
