ficci-naredco-knight-frank sentiments index
The analysis of the stakeholder expectations from the residentialand office sectors for Q3 2017 versus the actual market statistics reveals interesting insights. The survey conducted in Q12017 (January–march 2017) soon after demonetisation had a mixed industry outlook. The current sentiments had picked up in Q1 2017 as opposed to the preceding quarter, with respondents extending their support to one of the most important structural reforms in the country. However, the industry sentiments largely remained tepid for the coming six months. The expectations in our survey in Q12017 reflected optimism regarding the residential sales in the following six months (April–september 2017); however, the buyers across major cities have stayed away from the market and have continued their wait-and watch mode. Buyer evasiveness and developer defaults have all contributed in marring the sentiments for the future of residential sales. As regards residential launches, the survey sentiments in Q1 2017 are in sync with the current market reality. Developers are concentrating on completing their projects and are aligning themselves to reforms like RERA and the GST. The stakeholder expectations towards price appreciation in our survey conducted in Q1 2017 was not too positive for the next six months. The ground reality substantiates these sentiments since property prices at the end of September 2017 have largely remained stable as opined by the stakeholders six months back. On the office front, leasing volumes and new supply have been holding steady in Q3 2017 as was opined by stakeholders six months back. In terms of rentals, contrary to stakeholder expectations rentals across cities have remained muted at the end of September 2017. Therefore, in a nutshell, our survey findings suggest that the real estate sector is going to be under tremendous pressure in the coming six months. The residential sector will see a further downward trend in sales and launches and the prices will remain muted. Office supply will be under stress and leasing volumes will hold steady in the coming six months.