Cautious optimism is the flavour of the realty sector at the moment. This has been revealed by a Real Estate Sentiment index released earlier this week. Knight Frank India in association with National Real Estate Development Council (NAREDCO) and the Federation of Indian Chambers of Commerce and Industry (FICCI), released the index that broadly captures the overall perceptions and expectations of industry leaders.
The report is based on a survey of 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.
Shishir Baijal, Chairman and Managing Director, Knight Frank, India said, “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 six months.” — TNS