Real estate sentiment drops for first time in 5 quarters

Q: Stakeholder sentiments across all zones have witnessed a major dip during Q4 2014.

Aveek Paul,

7th January 2015

Real estate News in Kolkata

residential market

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the real estate sentiment index

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Replies (7)

On other hand the office market has been in line with our expectations with uptake happening across all regions. Relocation and consolidation of office spaces have been the major drivers of this segment with majority of the contribution coming from the outsourcing industry.

Supratim,

7th January 2015

Comment

Increasing liquidity caused by plunging transaction numbers and delayed economic recovery have weighed down the market. However, sentiments are still positive for the first half of 2015 and it remains to be seen how things pan out as reducing inflationary pressures and policy implementation help wake up the economy.

Mritunjoy Deb,

7th January 2015

Comment

The residential market has disappointed stakeholders with sentiments witnessing a sustained fall relative to the launches and absorption over the past three reference periods. Unlike the residential segment, vacancy levels within premium office buildings across prime locations have been consistently reducing with chances of a further drop in the near future.

Supratim,

7th January 2015

Comment

Though the Indian economic story seems to be heading in the right direction post the change of guard in the government, the 5 point drop in the future Sentiment Index levels definitely indicates a rationalization in stakeholder expectations regarding the pace at which changes will be brought about in the country.

Mritunjoy Deb,

7th January 2015

Comment

Yes Mritunjoy,
Apart from that investor confidence has taken a hit owing to oversupply within the residential space. Number of stakeholders expecting a price hike have also reduced by over 50% in Q4 2014 compared to the preceding period. And financial institutions continue holding steady with their positive outlook over the past three quarters

Supratim,

7th January 2015

Comment

And the major reson behind it was delays in the execution of GST, the insurance bill and a soft money on cutting interest rates have led to the drop. depressed festive sales have dented future sentiment levels of developers.

Mritunjoy Deb,

7th January 2015

Comment

Knight Frank India in association with the Federation of Indian Chambers of Commerce & Industry (FICCI) today released the fifth set of findings of its flagship report - The Real Estate Sentiment Index for Q4 2014 October December). The latest edition has captured the current sentiments of the supply side stakeholders, six months after the new government being elected to power.

Supratim,

7th January 2015

Comment