Whalesbook
Economic Momentum Supports Stability
The sustained optimism is bolstered by consistent high-frequency indicators pointing to robust economic momentum, effectively counteracting global uncertainties and reinforcing fundamental real estate strengths. Confidence is notably supported by enhanced macroeconomic visibility, stable funding channels, and disciplined decision-making across all market participants.
Shishir Baijal, International Partner, CMD, Knight Frank India, highlighted this synergy. He noted that residential markets are experiencing growth from higher ticket size demand and carefully managed supply. Simultaneously, the office sector continues its strong performance, driven by robust leasing activities and firm rental rates. These elements collectively signal a sector advancing on solid fundamentals.
Zonal Performance Shows Broad Strength
Future sentiment saw modest improvement across all regions, with every zone remaining in the optimistic territory. The South Zone maintained its leading position with a score of 62. This strength is attributed to significant office leasing in Bengaluru and Hyderabad, alongside resilient demand for higher-ticket residential properties.
The East Zone also improved to 62, supported by steady mid-segment housing demand. The West Zone strengthened to 62, benefiting from stable commercial activity and a measured approach to residential development. The North Zone recovered to 59, indicating a stabilisation of sentiment following an earlier period of softness.
Institutional Confidence Rises
Institutional stakeholders, encompassing banks, financial institutions, and private equity funds, recorded a higher Future Sentiment Score of 63. This reflects growing confidence in asset quality and prevailing liquidity conditions. Developers, however, adopted a more cautious stance, registering a score of 58. This measured approach aligns with their focus on demand visibility and prudent funding strategies.
Sentiment surrounding overall economic momentum also strengthened throughout the quarter. This was aided by easing inflation figures, accommodative monetary policies, and continued public capital expenditure, according to the survey findings. The residential segment saw modest improvement, underpinned by steady demand in higher price brackets and disciplined supply management. The office segment continues to anchor overall confidence, driven by strong leasing expectations and a limited supply of quality Grade A spaces.