Second wave influenced the future sentiments of the real estate stakeholdersThe second wave of COVID-19 in the country has dampened the future sentiments in the real estate sector.
Leading real estateconsultant Knight Frank India released the 28th edition of the 'Real Estate Sentiment Index Q1 2021' (January -March 2021) Survey on Thursday, April 22,in association with the Federation of Indian Chambers of Commerce and Industry or FICCI as well as the National Real Estate Development Council or NARDECO.According to the findings of the report, thesecond wave of COVID-19influenced the future sentiments of the real estate stakeholders in the country.The survey showed thatthe future sentiment scoreregistered a decline from 65 in October-December 2020to 57 in January-March 2021,amiduncertainties resulting from the relentless rise of new COVID-19 infections in the second wave.
The future sentiment score of stakeholdersfor the next six months fell across regions due to concerns over the second wave of the pandemic.
Although the score remains in the optimistic zone.
The outlook in the January-March quarter of supply-side stakeholders reflected caution for the next six months.According to the report,the outlook for the residential launches and sales softened in the January-March quarter.
The majority of the respondentsexpect the residential market to either remain steady or grow in the next six months.
Additionally, the second wave and the restrictions on mobility impacted the office occupancy levels, which weakened the market outlook for the next six months.With the precautionary measuresandrevival reforms, real estate witnessed historic sales over the course for last threequarters.
However, post the revision in stamp duty fromApril, the overallsentimentfor real estate investmentandthe demand of residential asset class witnessed a dip which has reduced the overall pace,'' saidMr.RohitPoddar, Managing Director,PoddarHousingandDevelopmentLimited.''However, with the foresight of the first waveandthe precautionary measures introduced by the government, real estate is hopeful to maintain stability.
The government's decision to initiate a wider vaccination drive will help in mitigating the impact of the second wave while mobilizing the sectors to push the economy furtheronthe growth track,'' added Mr Poddar.