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Business Standard
19-05-2025
- Business
- Business Standard
Real estate stakeholders turn cautious amid global uncertainty: Report
Indian real estate stakeholders have turned cautious amid global trade tensions, economic recalibration and regional volatility, according to the Knight Frank -Naredco Real Estate Sentiment Index report for the January–March 2025 period. The stakeholders include developers, banks, financial institutions and private equity funds. The sentiment score in Q1 CY25 declined to 54 from 59 in Q4 CY24, while the future sentiment score eased to 56, compared to 59 in the previous quarter. Hari Babu, President, Naredco, said: 'While the Knight Frank Q1 2025 Sentiment Index shows a marginal decline in both current and future sentiment scores compared to Q4, this slight dip amidst global uncertainties reflects the strength and adaptability of India's real estate sector.' The report gauges both current and future sentiment towards the real estate sector, as well as views on the broader economy and funding availability as perceived by supply-side stakeholders and financial institutions. A score of 50 denotes a neutral view; above 50 suggests positive sentiment, while below 50 indicates negative sentiment. According to the survey, the residential outlook leaned towards stability, with cautious launch plans. In Q1 CY25, 93 per cent of stakeholders expected residential prices to remain stable or improve, and 67 per cent anticipated stability or growth in new launches. However, residential sales sentiment moderated. Only 50 per cent of respondents expected sales to improve or remain steady in Q1 CY25, compared to 88 per cent in the same quarter last year. Meanwhile, the office segment continued to perform well, buoyed by robust leasing activity and stable rental growth. In Q1 CY25, 82 per cent of stakeholders expected office leasing volumes to remain steady or rise, while 91 per cent anticipated office rents to remain stable or increase. Shishir Baijal, Chairman and Managing Director, Knight Frank India, said: 'Q1 2025 marks a phase of strategic recalibration for the real estate sector, shaped by evolving global trade dynamics, softening consumption, and heightened geopolitical sensitivity. Despite these shifts, India's office market remains resilient, and the continued strength of the premium residential segment affirms the sector's underlying robustness.' In Q1 2025, only 55 per cent of stakeholders expected economic momentum to improve or remain stable, down sharply from 91 per cent in the same period last year. This moderation reflects concerns over global trade volatility and recent cross-border developments. However, the Reserve Bank of India's consecutive repo rate cuts in February and April are expected to support consumption and investment, the report said. Funding sentiment remained largely steady, with 79 per cent of stakeholders expecting fund availability to either improve or remain unchanged. Of this, 35 per cent foresee improved access—slightly lower than the previous quarter.
Time of India
19-05-2025
- Business
- Time of India
Realty stakeholders' sentiment turns cautious optimistic in Q1 amid global headwinds
Stakeholders in the real estate industry, such as developers, financiers, and institutional investors remained cautiously optimistic in the first quarter of 2025, even as sentiment levels showed a slight dip, showed the Knight Frank-NAREDCO Real Estate Sentiment Index for January-March. The current sentiment score declined to 54 from 59 in Q4 2024, while the future sentiment score eased to 56, also down from 59. Both metrics, though still in the optimistic zone, reflect rising caution amid global trade tensions , regional instability, and broader economic recalibration. Commercial real estate continues to underpin market resilience , with robust leasing activity and steady rental growth supporting positive sentiment. In the first quarter of 2025, around 82% of stakeholders expected leasing volumes to remain stable or increase, while 91% anticipated rents would hold steady or rise—signalling sustained demand and occupier confidence. The residential segment presents a mixed picture. While 93% of respondents of the survey expected prices to stay stable or increase, only 67% foresee similar trends in new launches. Sentiment on residential sales has notably moderated, with just 50% of stakeholders expecting improvement or stability--down from 88% in the first quarter of 2024. 'Q1 2025 marks a phase of strategic recalibration for the real estate sector, shaped by evolving global trade dynamics, softening consumption, and heightened geopolitical sensitivity. Despite these shifts, India's office market remains resilient, and the continued strength of the premium residential segment affirms the sector's underlying robustness. As macroeconomic indicators adjust, real estate is displaying its capacity to adapt with stability and long-term potential,' Shishir Baijal, CMD, Knight Frank India. These findings, part of the Knight Frank–NAREDCO Real Estate Sentiment Index for Q1 2025, gauge perceptions from developers, lenders, and other supply-side players. A score above 50 signals optimism, while anything below 50 indicates negative sentiment. 'While the Sentiment index shows a marginal decline in both current and future sentiment scores compared to Q4, this slight dip amidst global uncertainties reflects the strength and adaptability of India's real estate sector. The industry continues to move forward with optimism and long-term conviction,' said Hari Babu, president, NAREDCO. According to him, the Indian real estate sector is showcasing robust performance in the commercial segment, driven by the demand from Global Capability Centres (GCCs) and tech-enabled enterprises — reaffirming India's growing stature as a global business hub. On the residential front, developers are adopting a more mature, demand-led approach by focusing on high-ticket projects while rebalancing supply in the mid and affordable segments. The developer future sentiment score dropped to 53 in Q1 2025 from 58 in Q4 2024, as developers recalibrate supply strategies amid slowing low to mid ticket size segment demand in the residential sector and rising costs. The non-developer future sentiment score--including banks, financial institutions, and private equity funds--moderated to 57 from 60, reflecting a wait-and-watch approach on capital deployment, while remaining optimistic on office and high-ticket size residential segments. Economic Times WhatsApp channel )
