MUMBAI: While developers and financial institutions believe that the present residential and office markets are weaker they were six months ago, they are optimistic that the next six months would see a change.
This was one of the key findings of the FICCI-Real Estate Sentiment Index report launched by London based realty consultant firm Knight Frank in Mumbai.
The index is based on a quarterly review of stakeholders including developers, private equity funds, banks and NBFCs and is calculated on the basis of weighted average score of respondents across seven main cities.
While optimism is reflected among the respondents with regards to the residential sector in terms of launches, sales volume and price appreciation in the next six months, office sector as well as credit lending or funding situation are not expected to improve in the next six months.
According to the report, the residential index in terms of unit launches and sales volume have neared the 2009 levels that marked the global financial crisis following the collapse of Lehman Brothers in the US in end 2008. Office spaces on the other hand have seen their absorption levels significantly ahead of the 2009 level despite a contraction in office space demand, the report added.
Other highlights of the report includes Mumbai and Pune emerging as the frontrunners in price appreciation during 2009-2013, with Pune showing maximum appreciation among the IT/ITes driven markets of Bangalore, Hyderabad and Chennai.
The report also pointed that that the NCR market prices trended downwards till end of 2010, after which they have risen more than any other major residential market in India.