Real Estate 'Future Sentiment' is Improving

“Market outlook had turned pessimistic in the previous quarter after the Covid-19 outbreak. March 2020 'Current Sentiment' score had hit a low of 31 then. As the impact of the ongoing crisis became more apparent in the June 2020 quarter, sentiment spiralled down further resulting in an even lower score in this quarter,” the Knight Frank – NAREDCO survey findings suggest. That said, the 'Future Sentiment' score climbed up to 41 in the June 2020 quarter from 36 in March 2020 quarter, indicating that stakeholders’ sentiment for the future of real estate sector is improving. North India, according to the findings, is leading the zone-wise improvement in this 'Future Sentiment score The cash-strapped real estate sector may not see a substantial improvement in funding for projects over the next six months, with 47 per cent of the respondents of a joint survey by the 25th Knight Frank-FICCI-NAREDCO Sentiment Index expecting the squeeze to continue. However, this is still an improvement, albeit marginal, over the 50 per cent and 53 per cent respondents expecting the squeeze to continue in the March 2020 June 2019 quarters, respectively. With some of the macroeconomic indicators showing marginal improvement and with the impending festive season in the second half of the year, stakeholders have shown improved sentiment compared to the previous quarter, albeit they have remained in the pessimistic zone. At this juncture, with expected easing of lockdown and the advent of the festive season might help to revive economic activity and propel conversion of the pent-up demand.