Coronavirus hits real estate sentiment hard in April-June
Stakeholders remain pessimistic for 6 months: Survey
The sentiments in the country's real estate sector hit an all-time low during April-June due to the Covid-19 pandemic and remain pessimistic for the next six months even as stakeholders see slight improvement, according to a survey.
According to 25th survey by property consultant Knight Frank and industry bodies Ficci and Naredco, the current sentiment index fell to 22 in April-June from 31 in the previous quarter. "The current sentiment is recorded to be at the lowest," Knight Frank India said in a statement.
The future sentiment index improved to 41 from 36 during the period under review but remained in the pessimistic zone. "With continued economic stress and ambiguity regarding recovery, the current sentiments of the real estate stakeholders in India have been recorded at a low 22 in Q2 2020 (April-June)," Knight Frank India said.
This survey, covering the April-June 2020 period, was conducted in the first two weeks of July 2020.
The survey covers key supply-side stakeholders, which include developers, private equity funds, banks and non-banking financial companies (NBFCs).
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.