India’s Realty Market Robust amid Global Slump

Real estate industry stakeholders including developers, financiers and institutional investors continue to be optimistic about the business environment over the next six months backed by the Indian economy’s resilience despite a recessionary environment globally, showed Knight Frank-Naredco Real Estate Sentiment Index for April-June 2023.

The performance of both office and residential property markets is expected to be robust as underlying demand remains firm.

The institutional investors, who remained watchful in the past periods, indicated enhanced confidence in the Indian economy. The pause in the interest rate hike cycle by the Reserve Bank of India has also influenced them positively.

“Amidst turbulent global developments, India’s economy has firmly positioned itself as one of the world’s fastest-growing large economies, which has significantly influenced stakeholders’ sentiments in June quarter,” according to knight Frank India.

Despite facing high inflation in developed markets, the Indian economy demonstrated resilience and bounced back, instilling confidence in stakeholders regarding the stability of the domestic economic climate and real estate sector performance over the next six months.

Developers believe both the housing and commercial real estate segments will continue to exhibit positive momentum encouraging further investments.

“The residential market outlook is highly optimistic, with stakeholders expressing confidence across all parameters including sales, launches, and pricing, for the next six months,” according to Naredco.

Despite the potential threat of recession in developed markets, stakeholders maintain an upbeat outlook due to strong demand from India-facing businesses, the flexibility offered, and the rise of global capability centres within the country. This resilience further reinforces the positive sentiment in office leasing.