BackRealty sentiment improves in Dec quarter
Residential sales picked up on the back of attractive payment schemes, low interest rates, and stamp duty cut
PremiumThe realty sector is finally turning optimistic with a sentiment index score of 54 in the December quarter, with a positive demand outlook for the next six months, according to a survey by Knight Frank-Ficci-Naredco.
The Current Real Estate Sentiment Index is at its highest level in over a year, up from 31 points in April-June 2020. A score of above 50 reflects optimism.
Real estate sales in the June 2020 quarter had crashed nearly 80%, compared to the same quarter in 2019, following the pandemic, hurting customer sentiments. Subsequently, a recovery in demand for residential and office space helped lift sentiments. Residential sales picked up during the three months ended December on the back of attractive payment schemes from developers, low interest rates, and a cut in stamp duty by Maharashtra and Karnataka governments. With the Future Sentiment Score witnessing a surge from 52 points in the September quarter to 65 in the December quarter, the sector expects demand to pick up further.
“Geographically, the western part of the country saw the sharpest jump in Future Sentiment Index. This zone’s future sentiment jumped to 66 points in Q4 2020 from 47 points in Q3 2020. With respect to stakeholders, both developers and non-developers (banks, non-bank lenders and private equity funds) recorded an improvement in Future Sentiment score in Q4 2020," the report added.
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