Real Estate

‘Real estate sentiment turns positive in Dec quarter’

Our Bureau New Delhi | Updated on January 27, 2021

Office leasing activity will increase over the next six months, says survey   -  Getty Images/iStockphoto

Survey bullish on residential and office segments

Real estate sentiment turned positive for the first time in 2020 during the October-December quarter, according to Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index Survey.

The survey of over 170 respondents, including developers, private equity players and NBFCs, chose optimism about the real estate market with a sentiment score of 54 points. A score of 50 points denotes neutrality, while a sentiment of below 50 points shows pessimism.

Hit hard by Covid-19, real estate had witnessed a sharp drop in stakeholder sentiment throughout most of 2020.

For the April-June quarter, sentiment for the next six months had dropped to 22 points.

In the October-December quarter, however, 77 per cent of the survey respondents were of the opinion that residential sales would increase over the next six months, up from 66 per cent in the July-August period.

On the office market, 60 per cent of the October-December survey respondents, up from 47 per cent in the previous quarter, believed that office leasing activity would increase over the next six months.

Resurgence in economy

“The sector saw a lift in the market’s mood and increased stakeholder expectations of a stronger recovery in the next six months,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India, in a statement.

“The survey mirrors recovery expectations of not just real estate, but the economy. Investments in real estate over the recent past reflect positive sentiments on the part of investors, domestic as also global, on the resurgence in the Indian economic growth story,” added Niranjan Hiranandani, National President - NAREDCO and Assocham and Founder & MD, Hiranandani Group.

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Published on January 27, 2021
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