The index captured the rebound in stakeholder sentiments in residential and office segments, as the second and more virulent Covid wave subsided.
The Knight Frank-Ficci-Naredco real estate sentiment index for both current and future projections improved across all parameters in Q3 of the 2021 calendar year, aided by economic recovery. The index captured the rebound in stakeholder sentiments in residential and office segments, as the second and more virulent Covid wave subsided.
In Q3 2021, the current sentiment index score rose to 63, which is the best ever, after the dismal score of 35 recorded in Q2 2021, Knight Frank India said. The future sentiment index score rose from 56 in Q2 2021 to 72 in Q3 2021, which is also the highest ever in the history of the Index, it added.
For comparison, a score of more than 50 signifies ‘optimism’ in sentiments, while 50 means the sentiment is ‘same’ or ‘neutral’, and a score below 50 signifies ‘pessimism’. “A pick-up in the pace of vaccinations has helped address the fear of a third Covid wave to a great extent. Coupled with better preparedness to handle the pandemic, bouncing back after the lockdowns is becoming the norm of the day. These developments have helped stakeholders remain positive going forward,” the real estate consultancy noted.
Knight Frank India chairman Shishir Baijal said it is heartening to see, as it is reflective of the returning market confidence backed by rising demand. Whether in the residential or the commercial segment, there is a strong sense of optimism due to the improvements in our socio- economic environment.
“There is a significant revival in commercial and residential real estate market. Regional markets in the East, West and North are seeing positive response from IT and ITeS companies, as well as technology start-ups that have turned unicorns,” he added.
Aggressive expansion in operations of e-commerce and start-ups have been a key demand driver for office spaces. A high vaccine rate paired with concomitant sales from the festivities has kept the outlook for the residential sector positive, Baijal said.