The Future Sentiment score, which gauges the stakeholders’ expectation in the short to medium term, dipped from 72 in Q3 2021 to 60 in Q4 2021 but remained in the optimistic zone, reflecting a prudent optimism as the Omicron inflicted risk on the Indian economy is yet to be discerned.
For residential market, 72 per cent survey respondents expect sales to remain stable over the next six months, while 75 per cent of stakeholders fear new supply may decrease in the next six months. 62 per cent of the respondents expect a decline in residential prices over the next six months due to the Omicron virus related disruptions.
Region wise, the Future Sentiment score of south and east zones inched up in December quarter. The score for south zone increased to 64 from 62 in September quarter as key southern markets recorded good traction in both office and residential sectors. For the east zone, the score rose to 58 from 57 in Q3 2021.
The previous high of Current Sentiment Index Score was a score of 63 in July-September 2021. A score of 50 represents a neutral view or status quo, a score above 50 demonstrates a positive sentiment, and a score below 50 indicates a negative sentiment.
The Sentiment Score is a part of the Real Estate Sentiment Index for December quarter report, jointly developed by Knight Frank India, the Federation of Indian Chambers of Commerce and Industry (FICCI) and the National Real Estate Development Council (NAREDCO). The report aims to capture the perceptions and expectations of industry players in order to gauge the sentiment of the real estate market.
The Index is based on a quarterly survey of key supply-side stakeholders, including developers and non-developers — financial institutions including banks, non-banking financial companies (NBFCs) and private equity (PE) funds.