Chennai : The future sentiments in the real estate market have turned positive for the first time this year, though the current sentiments still remain negative.
The ‘Future Sentiment Score’ for Q3 2020 of the Knight Frank - FICCI - NAREDCO Real Estate Sentiment Index, which shows the sentiments of the stakeholders of the industry for the next six months, climbed the optimistic zone at 52 points for the first time in 2020. It moved up from 41 in the previous quarter. The ‘Current Sentiments Score’, an indicator of past six months, also recorded a significant improvement from the previous quarter low of 22 points to 40 points in Q3 2020.
A score of above 50 signifies ‘optimism’ in sentiments, a score of 50 means the sentiment is ‘same’ or ‘neutral’, while a score below 50 shows ‘pessimism’.
This revival in sentiments is attributed to the remarkable upturn seen in the real estate business, especially in the residential segment, in the third quarter of 2020 as a result of the unlocking process.
In Q3 2020, residential launches and sales bounced back from the Covid-induced decline, across cities. The office sector also resumed operations, at varying occupancies across markets as occupiers took steps to ensure continuity in business operations to their highest potential. These developments have turned the stakeholder outlook on the real estate sector to optimism, as reflected in the Future Sentiment score of Q3 2020.
“Low home loan rates and discounts and attractive offers for residential homes, have pushed sales velocity in the third quarter. While the volumes are yet to catch up to the pre-Covid levels, the spurt has been instrumental in perking up sentiments. Similar positivity is visible for the office sector as well, where we have seen a revival of leasing activities,” said Shishir Baijal, Chairman and Managing Director of Knight Frank India.
