Real estate sentiment index has registered its fourth consecutive quarter of drop
Representational Image
Mumbai: The real estate sentiment index, which measures the sentiments of various stakeholders in the real estate market has dropped further during the July-September quarter as delay in reforms and the underperformance of the residential market have weakened stakeholder confidence across all regions.
According to property consultant Knight Frank, the real estate sentiment index has registered its fourth consecutive quarter of drop. While the current sentiment at 49 is negative, the future sentiment score stands at 59.
Though the score indicates that the coming six months are likely to improve, Knight Frank noted that this continuous fall in the sentiment index for four quarters reflects the waning stakeholder confidence.
“Delayed reforms have weakened the present business sentiment, which explains the downward trend in the current score. The supply-side stakeholders (developers and financial institutions) believe that the current situation is worse, compared to what it was six months ago,” said Samantak Das, chief economist & national director, research, Knight Frank India.
Mr Das said that the stakeholders are particularly pessimistic about the residential sector and do not foresee any significant recovery in the next six months. “However, the optimism about the future is driven mainly by the office space which is expected to experience increase in rentals due to robust leasing volumes,” he added.
Download the all new Deccan Chronicle app for Android and iOS to stay up-to-date with latest headlines and news stories in politics, entertainment, sports, technology, business and much more from India and around the world.
( Source : deccan chronicle )
Next Story
