The 43rd edition of the Knight Frank – NAREDCO Real Estate Sentiment Index Q4 2024 (October–December 2024) report reflects cautious optimism among real estate stakeholders. Both the Current and Future Sentiment Scores remain above the optimistic threshold of 50 but have corrected downward from the previous quarter, influenced by global economic shifts and stakeholder concerns regarding economic growth.
The Current Sentiment Index Score declined to 59 in Q4 2024, down from 64 in Q3 2024, indicating a measured adjustment. Similarly, the Future Sentiment Score corrected to 59 in Q4 2024, compared to 67 in the previous quarter. Despite these corrections, both current and future sentiments remain firmly in the optimistic zone, underscoring continued confidence in the sector’s long-term prospects.
The residential market outlook in Q4 2024 sustains optimism with a 59% response rate for an expected rise in residential prices, while 38% of the stakeholders anticipate an increase in sales. A notable portion of 41% anticipated rise in residential launches.
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The office market outlook exhibits buoyancy on all key parameters – leasing, supply and rent – as the stakeholders remain confident about the performance of this asset class in the next six months.
Residential market outlook
The future sentiment for the residential market remains in the optimistic territory though confidence in residential launches has moderated, with 32% of respondents now expecting a decline in new launches in the first and second quarter of CY 2025, a significant denudation in sentiments from just 4% in Q4 2023.
A comparable trend is seen in residential prices. While 88% of respondents maintain that prices will increase or remain stable, the share of respondents anticipating a decline in prices is 12% in Q4 2024, rising from 1% in Q4 2023. This growing caution among stakeholders reflects a more measured outlook on the residential market.
In the Q4 2024 future sentiment survey, 38% of the respondents expect residential sales to increase, and 23% predicted stability. This demonstrates steady confidence in the market, with overall sentiment pointing towards moderation. In Q4 2024, 41% of survey respondents opined that residential launches will improve, while 28% indicated stability. 59% of the survey respondents in Q4 2024 expect residential prices to increase, supported by consistent demand and limited inventory in prime markets.
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