Last Updated on 19/08/2024 by wccexam Desk
The fast pace of the real estate sector is now showing slight brakes. However, this does not mean that the real estate sector is declining, rather it means that its speed has now reduced slightly compared to earlier.
The reason for saying this is the results of the Real Estate Sentiment Index of Knight Frank and NAREDCO. According to this, the current sentiment score of the real estate sector has come down to 65 from the all-time high of 72 in the January-March quarter. Whereas the future sentiment score has come down from 73 to 65 now.
According to experts, there is no need to panic due to this decline as it is still in the positive zone. Any score above 50 in this index is a sign of growth. In such a situation, a score of 65 can be considered quite good for the real estate sector.
Similarly, the future sentiment score being at 65 is also an indication of the boom continuing in the future. This means that there is hope of the boom continuing in the real estate sector in the long term, which is currently considered to be a bit quiet after the elections and the budget.
According to the results of Knight Frank and NAREDCO’s Real Estate Sentiment Index, 63 percent of home buyers expect an increase in house prices in the coming time, while 51 percent of home buyers are confident of an increase in house sales. At the same time, 24 percent of home buyers expect stability. Experts believe that if the interest rates on home loans decrease in the coming months, then it is difficult for the pace of real estate to slow down.
In the real estate sentiment index of Knight Frank and NAREDCO, the opinion of developers and non-developers i.e. banks, financial institutions and PE funds etc. is also taken. According to this, the future sentiment index of developers has come down from 72 in the first quarter to 61 and the future sentiment index of non-developers has come down from 73 in the first quarter to 68.
In such a situation, it can be understood that looking at the current situation of the country and the world, the real estate stakeholders are being cautious but to know the future of real estate, we will have to wait for the next quarter’s survey.
Source (PTI) (NDTV) (HINDUSTANTIMES)