Real estate sentiment scores bounce back
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,” says Samantak Das, Chief Economist & National Director-Research, Knight Frank India, sharing an overview of the residential and commercial real estate findings for Q1-2016.
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. The residential sector, on the other hand, has restored positive sentiment amongst the developers and lenders for the first time after four quarters.
* Overall, there is a considerable improvement in the sentiments for the residential sector. The number of respondents with a positive outlook 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 launches. Developers are 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 six months.
* 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
ref:The Hindu
