The pace of the real estate sector may slow down, you can now get a cheap house

There is a possibility of a slowdown in the speed of the Indian economy running on the track of growth. The report is showing that there has been a decline in the sentiment index among home buyers and investors.

Amidst global tensions, real estate developers and financial institutions are very positive about the growth in the realty sector in the next six months. Real estate consultant Knight Frank and real estate sector regulator National Real Estate Development Council (NAREDCO) have released an index on the second (April-June) quarter of 2024.

What does this report mean?

According to the Knight Frank-NAREDCO Real Estate Sentiment Index Q2 2024, the current sentiment has dropped from its all-time high of 72 points to 65 points in the first quarter of 2024. 

Future sentiment has also weakened from 73 points to 65 points. Let us tell you that if the number 50 comes in the index, it means that stability in demand can be seen. If the number is more than 50, then there is a possibility of increase in demand and if it is less than 50, then there is a possibility of decrease in demand.

Knight Frank said both current and future sentiment remain in positive territory, reflecting continued confidence in the sector's long-term prospects. These numbers reflect a more restrained outlook on recent real estate growth, which has been affected by election and budget speculation.

Because of this there is positivity in the sector

The adjustment in future sentiment reflects a positive but more conservative outlook for the near future. The real estate advisory said that despite this decline, sentiment remains in positive territory, reflecting the resilience of the sector with notable activity in the residential and office markets.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said that the current and future sentiment at 65 (points) is still positive. This recent decline should not be a cause of concern as it only indicates a shift towards cautious optimism in the real estate sector. 

He said that the economy remains positive and stability is being seen in key indicators. It also remains combative towards global geopolitical developments.