From a high of 68 in the previous quarter, housing sentiment has somewhat decreased. According to the most recent Knight Frank-NAREDCO Index of Housing Sentiment Report Q2 2022, amid a rapidly shifting economic climate, it has now dropped to 62. According to the study, “the reading of the current sentiment index decreased, while it remained comfortably in positive territory, mostly due to the projected impact of two further repo rate rises in May and June 2022.”
The Future Sentiment Score, which measures stakeholder sentiment for the real estate sector’s next six months, has decreased from its all-time high of 75 in the first half of 2022 to 62 in the second quarter of 2022, according to the report, rising inflationary pressures and the rupee’s depreciation against the dollar have cast a shadow over the industry. Nevertheless, the research states that optimism about the present and future performance is still high since statements about the impact of the global economic crisis on India’s economy have not yet come to pass.
According to the research, “Property supply-side actors remain alert facing global concerns on three fronts: economic turbulence in the US, the conflict in Ukraine, and economic stagnation in Europe.” “The previous 8-10 quarters have demonstrated that there is tremendous hidden demand in the housing market which, supported by fair rates and prices, Prospects for the Sector,” stated Shishir Baijal, Chairman and Chief Executive Officer of Knight Frank India.
The Knight Frank-NAREDCO Real Estate Sentiment Index survey also highlighted the cautionary nature of the prognosis for the residential real estate market in the second quarter of 2022, as stakeholders anticipate robust sales and market price growth while maintaining a modest pricing outlook. According to the research, “most stakeholders feel there may not be room for additional home price rises at a time when housing affordability is being weighted down.”
The Chairman and Group Director of NAREDCO, Rajan Bandelkar, stated: “India’s real estate sector is one of the few shining stars in the world economy. This industry is performing well and has been steady for several quarters. The strong foundations of the Indian economy and the real estate market continue to support a variety of players, including developers, development agencies, policymakers, and end users, even as the environment and the global order remain cautious. Future housing sector growth is likely due to tighter monetary and economic conditions.
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