NewZNew (Chandigarh) : FICCI- Knight Frank Indiaunveil the latest findings of the Real Estate Sentiment Index for January – March 2016
Dr Samantak Das, Chief Economist & National Director, Research, Knight Frank India shares an overview on India’s Real Estate Sentiment (Residential and Commercial) for Q1 2016
“After a lull of five quarters, the overall sentiment has experienced a sharp uptick at the back of the Union Budget’s focus on real estate and infrastructure. Additionally, the Real Estate Regulation Bill becoming an Act has boosted the sentiment further since the sector is expected to become much more transparent and organised which in turn will benefit all the stakeholders.
The stakeholders have been optimistic about the Office market for quite some time now and the same trend has been reflected in this survey as well. Residential sector, on the other hand, has restored positive sentiment amongst the developers and lenders for the first time after four quarters.”
Findings of the Report:
RESIDENTIAL SECTOR ON A RECOVERY PATH
- Overall, there is a considerable improvement in the sentiments for the residential sector. The number of respondents with a positive outlook for the sector has gone up in Q1 2016
- The pressure on unsold inventory has been reducing since the last four quarters due to the limited number of new launches. Developers have been focussing on project completions, instilling conﬁdence in buyers
- The beneﬁts provided to buyers in the Union Budget 2016 are also expected to push demand further. Stakeholders are quite optimistic about residential sales – nearly 54% of the respondents believe that the demand will pick up in the coming six months
COMMERCIAL OFFICE SPACE MARKET SHOWS RENEWED OPTIMISIM
- Stakeholders are quite optimistic about the ofﬁce market, especially in terms of leasing volumes and rental appreciation
- Nearly 73% of the respondents expect the leasing volume to improve in the coming six months
- In view of the limited ofﬁce supply and ﬁrming leasing volumes, stakeholders are of the opinion that the ofﬁce space rental appreciation rate will be better in the next six months
ZONAL SENTIMENT SCORE
- The north zone witnessed a substantial recovery in the future sentiment score in Q1 2016
- This score stood below the positive mark in the last quarter; however, now at 67, it indicates that sentiments have strengthened and stakeholders are quite optimistic about the real estate market in the next few months.