Stake holder sentiment declines to 59
in Q3 2015 from 71 in Q3
2014:
On-going festive
season fails
to boost market sentiments!
FICCI- Knight Frank India releases
the latest findings
of the Real Estate
Sentiment Index for Q3 2015 (July- September 2015)
Dr
Samantak Das- Chief Economist
& National Director - Research,
Knight
Frank India shares an overview on India’s Real Estate Sentiment (Residential and Commercial) for
Q3 2015
“Delayed
reforms have weakened
the present business sentiment, which explains the down ward trend in the
current score. The supply-side
stakeholders (developers
and financial
institutions) believe that today’s situation
is worse, compared
to what it was six months ago.
Although
the future scores at 59
falls
in the positive
territory, the overall declining
trend reflects the weakening business
confidence. The stake holders are particularly pessimistic
about
the residential sector
and they don’t foresee any
significant recovery
in the next six
months.
However, the optimism
about
the future is driven mainly by the office space
which is
expected to
experience
increase in
rentals
due to robust
leasing volumes and limited
supply.”
STAKEHOLDERSENTIMENTDECLININGINQ3
2015
Findings of the Report:
· Stake holder
sentiments
have been going downhill
since Q42014,
indicating their shaken confidence
levels. This
is the second quarter
in a row where in
the current
sentiment score
is below the positive mark.The stakeholders believe today’s situation to be worse compared
to what it was six
months
ago.
· However,
the respondents are of the opinion that the real estate market will improve in the
coming six
months.
The future
sentiment
score, at 59, although in positive territory,
continues to show a declining trend
over
the last four quarters.
RESIDENTIAL SECTOR SENTIMENT SHOWS CONSTANT DECLINE
· The on-going festive season
is unlikely
to revive the residential
sector
in the
major cities
of India. Majority
of the supply side
stake
holders are of the opinion that
the residential sector is
not going to experience
any upturn
in sales and new
launches
in the
coming six months
· Nearly 82% of
the survey respondents feel that residential
price appreciation
is either going to remain
the same or worsen
in the
coming six months.
COMMERCIAL OFFICE SPACE MARKET POISED FOR BETTER TIMES
· The stakeholders
are reasonably optimistic
about
the office market
and 62% of the respondents
expect
the
leasing volume
to
improve at the back of limited supply.
·More than 50%of the
respondents feel that office space
rentals
will strengthen by the
end
of
Q12016.
ZONAL SENTIMENT SCORE
· Although the
survey
participants
across the
country
continue
to be
optimistic about the
future,
all the zones observed
adipin
sentiment
levels
during
Q3 2015 compared to the preceding quarter–a
clear
reduction in
business
sentiments
across
India.
· The North zone
witnessed the
steepest
decline
in the
future sentiment score
during Q3 2015.
Stake holder sentiments have barely
made
it into
the positive
territory in
view of the
current challenges
faced
by the
underperforming residential sector in
NCR.
· Although the
Q3 2015
survey
results show that
developers
and financial institutions
believe that
the market
scenario
will
improve in
the next six
months,
the level of optimism is
demonstrating a declining trend since Q3 2014.
About FICCI
Established in
1927,
FICCI is the largest and oldest apex business organization in India .A non- government,
not-for-profit
organization, FICCI is the voice of India’s business
and industry. FICCI draws its
membership
from the corporate sector, both private and public, including
SMEs and
MNCs;
FICCI enjoys an
in direct
membership of over
2, 50,000companies from various regional chambers
of commerce.
About
Knight Frank India
Knight Frank is
the leading independent
global property
consultancy.
Head quartered
in London, Knight
Frank
and its New York-based global
partner, New mark
Grubb Knight
Frank, operate
from 370
offices,
in 55 countries,
across
six
continents.
Morethan12,000
professionals
handle in
excess
of US$1 trillion
(£643 billion)worth
of commercial, agricultural
and residential real estate annually,
advising
clients ranging
from
individual owners
and buyers to major developers, investors
and corporate tenants.
In India, Knight
Frank
is head quartered in
Mumbai and
has more than
1000 experts across
Bangalore, Delhi,
Pune,
Hyderabad, Chennai,
Kolkata
and Ahmadabad. Backed
by strong research and
analytics our
experts work
with clients
to offer a comprehensive
range
of real estate services
across
advisory, valuation and
consulting; transactions (residential,
commercial,
retail,
hospitality,land,capitals);facilities management;
and project management. For more
information, visit
www.knightfrank.com
For futher information please contact:
Abanti Banik
Manager–PR, Knight Frank India
+919972998403
Blue Lotus PR( For Knight Frank India)
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