ficci-naredco-knight-frank sen­ti­ments in­dex

Realty Plus - - Cover Story -

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.

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