Indian real estate sector remains positive amid high inflation
Real Estate

Indian real estate sector remains positive amid high inflation

Besides higher inflation concerns and rising interest rates, the real estate sector remains positive.

According to Knight Frank India, National Real Estate Development Council (NAREDCO) Real Estate Sentiment Index of the first quarter (Q1) of 2022 expects the current sentiment will increase to 68. It showed that most stakeholders experienced positive business developments in the last six months, including the survey period.

According to the survey, a future sentiment score of 75 was at the highest peak. This score shows the expectations of the investors for the next six months. A score above 50 indicates optimism, 50 means neutral, and a score below 50 indicates pessimism.

Chairman and Managing Director of Knight Frank India, Shishir Baijal, said that the growth in the residential market has been impressive, boosting the sentiments of the entire realty sector. As many companies are shifting to work from the office, office space demand has also been growing steadily.

He highlighted the geopolitical tensions, which are impacting crude oil prices, leading to a rise in inflation in the Indian market, which can affect the demand from end-users. It is further complicated by supply chain disruptions, rising input costs and an impending interest rate hike.

Image Source

Besides higher inflation concerns and rising interest rates, the real estate sector remains positive. According to Knight Frank India, National Real Estate Development Council (NAREDCO) Real Estate Sentiment Index of the first quarter (Q1) of 2022 expects the current sentiment will increase to 68. It showed that most stakeholders experienced positive business developments in the last six months, including the survey period. According to the survey, a future sentiment score of 75 was at the highest peak. This score shows the expectations of the investors for the next six months. A score above 50 indicates optimism, 50 means neutral, and a score below 50 indicates pessimism. Chairman and Managing Director of Knight Frank India, Shishir Baijal, said that the growth in the residential market has been impressive, boosting the sentiments of the entire realty sector. As many companies are shifting to work from the office, office space demand has also been growing steadily. He highlighted the geopolitical tensions, which are impacting crude oil prices, leading to a rise in inflation in the Indian market, which can affect the demand from end-users. It is further complicated by supply chain disruptions, rising input costs and an impending interest rate hike. Image Source

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