Indian realty stakeholders optimistic: survey – Asia Times

India’s real estate sector, one of the worst-hit during the nationwide lockdown last year, is now on the mend, says a survey by property consultant Knight Frank. This is the 27th edition of a quarterly survey of key supply-side stakeholders covering developers, banks, financial institutions and private equity players operating in the sector.

The Real Estate Sentiment Index for the October-December 2020 period indicates that residential property sales across eight major Indian cities have reached pre-Covid levels –61,593 units – and that the sentiment is likely to improve further. The residential segment outlook, according to the survey findings, was supported by pent-up demand, low home loan interest rates, attractive residential prices and incentives by state governments such as a cut in stamp duty in Maharashtra.

Nearly 77% of the respondents in the December 2020 quarter believed residential sales would rise over the next six months, up from 66% in the September 2020 quarter and 31% in the June 2020 quarter. However, 38% of respondents believed that prices of residential units would rise, down marginally from 40% in the September 2020 quarter.

As per the report, the “Current Sentiment Score” grew 14% over the previous quarter and for the first time in 2020 entered the optimistic zone at 54 points. A score of above 50 indicates “optimism,” a score of 50 means the sentiment is the “same” or “neutral,” while a score below 50 indicates “pessimism.” The “Future Sentiment Score” also grew sharply to 65 points, from 52 points in the preceding quarter.

As for the office market, 60% of respondents believed that office leasing activity would increase over the next six months. In the preceding quarter, it was 47%.