MUMBAI; As the country awaits the election verdict, both the current as well as future sentiment in the realty industry depicts a significant upward trend, reveals the latest quarterly Real Estate Sentiment Index report by FICCI-Knight Frank.
This, the second quarterly real estate sentiment index report, follows the first index that covered Q4 2013 and was released in February.
The report highlighted that about 67 per cent of the respondents foresee an improvement in residential project launches and sales over the next six months. However, price appreciation is likely to remain sluggish.
“Stakeholders have pinned their hopes on an imminent change in the political leadership, which has pushed the future sentiment score to 63 in comparison to 50 in the last survey. Financial institutions too have an optimistic view of the future as compared to the last quarter where they were somewhat pessimistic,” the report added.
New office supply is, however, expected to be restrained during that period, though stakeholders expect an upsurge in leasing volume by the end of Q3 2014, according to the report.
Dr Samantak Das, Chief Economist & Director – Research said: “In the case of the residential sector, project launches and sales volumes are expected to grow over the next six months, while price appreciation is likely to remain sluggish. On the other hand, the market expects an upsurge in leasing volume within the office market with a check on new office supply. Rental growth, however, will either strengthen or remain unchanged by the end of Q3 2014, indicating a strong perception that office rentals have already bottomed out.”