'Stakeholder sentiment in residential realty remained subdued'

Despite signs of revival in the Indian economy, the stake-holder sentiment in the residential real estate space did not improve during October-December quarter, mainly due to liquidity issues and lesser number of transactions, according to a study.
However, sentiment in the commercial space got a leg-up mainly backed by the growing confidence in Indian economy and expectations of an increase in transaction volumes and rentals in the next six months, the study conducted by property consultant Knight Frank said.
The future sentiment during the period under review declined to 66 points as compared to 69 and 71 points during April-June and July-September 2014 quarters, respectively.

"Stakeholder sentiment in the residential space has seen a sustained fall relative to the launches and absorption over the past three reference periods. Increasing illiquidity caused by falling transaction numbers and delayed economic revival have weighed down the market," its Chief Economist and Director, Research, Samantak Das said.
As per the study, the proportion of respondents expecting a rise in prices has more than halved in the fourth quarter (October-December) of 2014 compared to the preceding quarter (July-September).
Currently, just 31 per cent of respondents believe that prices will increase in the following six-month period, it said.
"Developers' sentiment had improved in September mainly backed by the impending festive season. However, it declined during the fourth quarter as the festive season did not pay off as they expected," Das noted.

Financial institutions, on the other hand, have been holding steady with their positive outlook over the past three quarters, he said.