Current Sentiment rating according to a survey conducted jointly by the consulting company Knight Frank and industry organizations. RARE as well as FICCI, fell from 57 in the first quarter of 2021 to 35 in the second quarter of 2021, but the decline is less intense than during the first wave of Covid (second quarter of 2020), when the indicator reached an all-time low of 22.
IN Future mood The rating declined slightly from 57 in the first quarter of 2021 to 56 in the second quarter of 2021, continuing to remain in the zone of optimism. Here, too, the stakeholder outlook reflects greater resilience in the second quarter of 2021 than in the second quarter of 2020.
Stakeholder perspective on office market there was an improvement in the second quarter of 2021, especially with regard to leasing activities. In the second quarter of 2021, 40% of respondents were of the opinion that office rental activity would increase over the next six months, up from 34% in the previous quarter. About 21% of respondents in the second quarter of 2021, up from 15% in the first quarter of 2021, expect office rents to rise in the next six months, while 40% expect rents to remain stable.
A score of 50 represents a “neutral” point of view or “status quo”. A reading above 50 indicates “positive” sentiment, while a reading below indicates a “negative” outlook.
Optimism in the outlook for the residential real estate market will continue in the second quarter of 2021. More than 50% of respondents surveyed in the second quarter of 2021 still expect an increase in the number of commissions and home sales in the next six months.
“The tragedy of the second wave of the pandemic lowered overall industry sentiment in the second quarter of 2021. However, our findings from the first wave, as well as the less stringent restrictions in the second wave, prepared us well for mitigation. the severity of economic ramifications, showing some level of positive stakeholder views compared to an extremely low sentiment score of 22 over the same period last year. Vaccine availability, a robust vaccination program, and continued economic activity were the main reasons for the optimistic estimates of future sentiment compared to last year, ”said Shishir Bayjal, CMD. Knight frank india…
The real estate sector is acting cautiously, he said, and recognizes that there is latent demand for both the office and residential sectors, albeit constrained by the protracted pandemic.
Supported by a resurgence in economic activity after the second wave, stakeholder forecasts for the future over the next six months remain in the upbeat zone in most regions.
In terms of geography, the most dramatic recovery in the Future Sentiment Score occurred in the Western Zone. The sentiment index for the future for this zone jumped from 53 in the first quarter of 2021 to 60 in the second quarter of 2021. With the resumption of economic activity, future sentiment (for the next six months) of stakeholders in most regions remains in the optimistic zone.
The score for sentiment for the future in the Northern Zone declined slightly from 56 in the first quarter of 2021 to 55 in the second quarter of 2021, while the score for the southern zone decreased from 63 in the first quarter of 2021 to 57 in the second quarter of 2021. entered the zone of pessimism, falling from 53 in the first quarter of 2021 to 48 in the second quarter of 2021.
“Despite the disastrous impact of the pandemic, the outlook for the sector is indeed positive. The rise in positive sentiment is due to several factors. The nationwide vaccination campaign has been a huge boost to the mood in the sector. The industry is also doing its part by strengthening healthcare infrastructure to support COVID patients and initiating vaccination campaigns to vaccinate more than 2 million construction workers. In addition, the sector is actively adopting digital technologies to optimize the supply chain, attract home buyers and, most importantly, ensure business continuity, ”said Getamber Anand, Co-Chair of the FICCI and CMD Real Estate Committee, ATS Infrastructure.
According to him, at the initial stage of 2021, the sector was preparing for a sharp reversal, which was thwarted by the second wave. The industry benefits from certain positive trends and opportunities. Despite the blockage, the developers completed several large commercial projects and transferred them into ownership and lease. This demonstrates a stronger confidence among developers in business opportunities in the new environment. ”
In terms of macroeconomics, more than 80% of respondents in the second quarter of 2021 survey are still optimistic about the state of the economy in the next six months. In terms of credit availability, stakeholder outlook improved in the second quarter of 2021, with 46% of respondents – up from 41% in the first quarter of 2021 – expecting an increase in the next six months.
The outlook for both developers and non-developers, including banks, financial institutions and private equity funds, remains in the optimistic zone in the second quarter of 2021, although the sentiment rating among non-developers has dropped significantly.