The real estate sector is optimistic about its prospects after braving the second COVID-19 wave, revealed a survey. The 29th Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index Q2 2021 measured the sentiment of stakeholders in the real estate sector.
The survey was conducted between April and June in the middle of the second COVID-19 wave that resulted in catastrophic loss of life and damage to the economy. A score above 50 indicates optimism, while below 50 indicates pessimism and 50 represents no change in sentiment.
According to the survey, the Future Sentiment score was 56 for Q2, just marginally below the 57 recorded in the Q1 survey. Future Sentiment measures the sentiment of stakeholders for the coming six months in the real estate sector. The West Zone saw the most dramatic recovery in Future Sentiment from 53 in Q1 to 60 in Q2.
Even as future prospects looked bright, backed by resumption of economic activity, most were pessimistic about the current situation. The respondents scored 35 in Current Sentiment, compared to 57 in Q1. The drastic change was still not comparable to the slump recorded during the first wave of COVID-19, when the Current Sentiment score was at 22.
Respondents also believed that the office market space would be leading the charge in recovery. Forty percent of respondents believed that there will be an increase in demand for office leasing, compared to 34 percent in Q1.
Dr Niranjan Hiranandani, National President, NAREDCO and MD, Hiranandani Group said, “The calibrated reopening of economic activities with accelerated inoculation drive has resulted in an upward trajectory of home buying demand and sales in June on back of stability and security it offers during the deep crisis.”
Getamber Anand, Co-Chair, FICCI Real Estate Committee and Chairman and Managing Director, ATS Infrastructure Ltd, added, “Despite the debilitating impact of a pandemic, the outlook of the sector is really positive.”
(Edited by : Shoma Bhattacharjee)