Real estate sector outlook slips to pessimistic: Knight Frank - FICCI - NAREDCO Real Estate Sentiment Index
In the latest survey by Knight Frank - FICCI - NAREDCO - 'Real Estate Sentiment Index Q2 2019', Indian real estate stakeholders have downgraded the current period outlook for the ongoing six months to 'Pessimistic', indicating no improvement in the level of on-ground activities for the sector. In sharp contrast to the preceding quarters, the overall current sentiment for the real estate sector has been rated at 47 points for the period April - June 2019. The overall slowdown in the economy, coupled with factors like the NBFC crisis, developer defaults and bankruptcies, have slackened the sentiments of the sector, especially for the residential segment.
The situation is further compounded by factors like the ongoing liquidity crisis and a diminutive demand scenario. The outlook for the next six months was scored at 52, just above the neutral line. Stakeholders, while showing moderate optimism, are still cautious in their expectations on account of an overall economic slowdown that is impacting the real estate sector. The sentiments, however, reversed for the office sector where the stakeholders' outlook remains positive and both leasing and rents which are expected to be on an upward swing in the coming six months.
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