NEW DELHI: Despite higher inflation concerns and chances of rising interest rate, sentiments in the real estate sector remains optimistic. According to Knight Frank – National Real Estate Development Council (NAREDCO) Real Estate Sentiment Index Q1,2022, current sentiment soared to a new high of 68 – indicating that most stake holders experienced positive developments in their businesses in the past 6 months including the period of the survey.
The survey noted that future sentiment score of 75 was at a historical best. This score indicates expectations of the investors for the next six months from the time of the survey. A score above 50 indicates optimism, 50 means neutral, while a score below 50 indicates pessimism.
Shishir Baijal, Chairman and MD, Knight Frank India said, “The growth in the residential market has been impressive, elevating the sentiments of the entire sector. As most companies start calling their staff back to work, office space demand has also been growing steadily”
Baijal, however, noted geo- political tensions, impacting crude oil prices, are leading to a rise in inflation in Indian market, which can impact demand from end users. The scenario is further complicated with supply chain disruptions, rise in input cost and an impending interest rate hike.