Real Estate Sector: Further increase in house prices is possible, but tariff war and a slowdown in the economy have increased the concern of the real estate sector

Housing Sector: The sentiment for the present and future in the Knight Frank India-NAREDCO Real Estate Sentiment Index is better than expected, but the sentiment has weakened compared to the previous quarter.

Housing Price Increase Likely: If you are thinking of buying your dream home, then be ready to pay a higher price. Because the trend of rising residential property prices may continue. At the same time, despite expensive houses, it will not have any effect on sales. Along with this, the process of launching new housing projects by real estate companies is going to continue.

The Knight Frank India-NAREDCO Real Estate Sentiment Index has been released for the fourth quarter of the year 2024, October-December quarter. In this report, concerns are also being seen among the stakeholders associated with the real estate sector regarding the concerns of economic growth among the stakeholders along with the global changing economic conditions. The Knight Frank India-NAREDCO Real Estate Sentiment Index shows better-than-expected current and future sentiments, but has weakened over the previous quarter. The current sentiment score has declined to 59 in Q4 2024 from 64 in Q3. The future sentiment score has also declined to 59 from 67 in the previous quarter.

According to the report, despite these corrections, both current and future sentiments remain optimistic, reflecting continued confidence in the long-term prospects of the sector.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, "The Real Estate Sentiment Index remains in the optimistic zone but remains extremely cautious. This is happening due to the sharp change in the geopolitical situation and the domestic economic conditions. Changes in global economic policy, particularly the US tariff regime, as well as the slowdown in domestic growth are forcing the real estate sector to adopt a more cautious stance. In the coming quarters, developers and investors are expected to maintain a wait and watch approach, aiming to maintain the momentum built by the sector over the last few years," he said.