Indian Real Estate Sector Shows Resilience and Growth in Q3 2024

The Indian real estate sector has demonstrated strong resilience and growth prospects in the third quarter of 2024, according to the Real Estate Sentiment Index Q3 2024 by Knight Frank and NAREDCO. The index reveals a positive outlook among real estate developers, banks, financial institutions, and private equity funds. The Developer Future Sentiment Score increased from 61 in Q2 2024 to 65 in Q3 2024, indicating renewed optimism among developers who are adapting to shifting market dynamics and leveraging ongoing sales momentum.

The residential market is particularly buoyant, with 40% of respondents expecting residential sales to increase and 28% predicting stability. A significant 62% of respondents anticipate an increase in property prices, reflecting steady confidence in the market. This optimism is further underscored by the Non-Developer Future Sentiment Score, which remained stable at 68 through Q2 and Q3 2024, highlighting confidence in well-structured real estate projects and the sector’s long-term growth prospects.

The commercial real estate sector also shows promising signs. The office market outlook is robust, with 76% of respondents expecting office leasing to improve, driven by positive corporate sentiment and sustained demand recovery. Additionally, 47% predict an increase in office supply, and 73% anticipate a rise in office rents, fueled by increasing demand for high-quality office spaces. These findings highlight the resilience and growth trajectory of India‘s office market, supported by a favorable economic environment and evolving corporate requirements.

The overall sentiment index suggests that while the current sentiment score moderated slightly to 64 from 65 in the previous quarter, the future sentiment score improved to 67, indicating growing confidence among stakeholders in the sector’s growth over the next six months.