Real Estate Sector Expresses Cautious Optimism
Knight Frank India in association with National Real Estate Development Council (NAREDCO) and the Federation of Indian Chambers of Commerce and Industry (FICCI), today released the Real Estate Sentiment Index, which broadly captures the overall perceptions and expectations of industry leaders. The report is based on a survey of, besides others, over 150 stakeholders of the Indian real estate sector including leaders from the development and financial side. The survey indicates that for the next six months, the sector has a positive outlook on account of the stable policy environment post introduction of structural reforms implemented in 2017. Further, it notes that there is general optimism around the launches, with the hope of a gradual upward incline. The stakeholders have opined that the buyers are still in the wait and watch mode which will dampen sales. Future sentiments for price appreciation, however, remained marginally down, indicating that the sector does not expect any price rise in the coming six months.
ShishirBaijal, Chairman and Managing Director, Knight Frank, India said, “The real estate sector has shown signs of controlled optimism in the recent survey. A majority of respondents remained moderately positive towards the state of the economy for the next 6 months. However, it should be noted that the sentiments are in a decline compared to the previous periods of the survey. Based on our survey, the respondents expect real estate sector to witness gradual growth in the coming six months. The future sentiments for both major asset classes, i.e. residential and office, are expected to be moderately positive. The stakeholders show positivity with regard to new residential launches on the back of increasing clarity of policy. Nevertheless, it is to be highlighted that the sentiment for pricing remains negative, implying an anticipation of further decline in residential prices over the next 6 months.’