After remaining muted for two straight quarters, the sentiment of real estate stakeholders has shown improvement in the outlook in Q4 2019, a report said.
After remaining muted for two straight quarters, the sentiment of real estate stakeholders has shown improvement in the outlook in Q4 2019, a report said. Even the future sentiment score has bounced back after remaining weak in Q3 2019, the Knight Frank–FICCI–NAREDCO Real Estate Sentiment Index Q4 2019 survey showed. The expected recovery is in line with the improvement in some macro-economic indicators including PMI for services and manufacturing. “A recovery in the current sentiment score hints that the stakeholders are cautiously optimistic as they keep a close watch over the implementation of the slew of measures undertaken by the government to revive the sector,” the report also said.
The sentiment has rebounded to the optimistic zone of 53 in the October-December quarter of 2019. The future sentiment score has also recovered to 59 in Q4 2019. A score of over 50 indicates ‘optimism’ in sentiment. A score of 50 signifies the sentiment is ‘same’ or ‘neutral’, while a score of below 50 means ‘pessimism’.
“This optimism is significant in the wake of the continued downslide in India’s overall economic performance. …We expect the market to remain cautious and sensitive to even the smallest change as large-scale demand is yet to pick pace,” said Shishir Baijal, Chairman and Managing Director of Knight Frank India. Finance Minister Nirmala Sitharaman has announced a slew of measures in the last few months including alternate investment fund (AIF) for last-mile funding of affordable housing, rationalisation of GST rates, liquidity support to HFCs and NBFCs. However, the survey also said that more targeted solutions are needed to further push up the sentiment and boost demand. The economy is seeing a slowdown for some time now, with GDP growing at dismal 4.5 per cent in Q2FY20.