Realty sector displays positive outlook: Survey
New office supply is likely to stay in check during the next six months.
Mumbai: Anticipating a change in political leadership, sentiments of home buyers and investors have seen an improvement displaying a strong positive outlook for the real estate sector, a recent survey said.
According to a survey conducted by Knight Frank and FICCI, stakeholders have pinned their hopes on an imminent change in political leadership which has pushed `future sentiment` score to 63 in Q1 2014, as compared to 50 during the October-December 2013 quarter.
The report suggested that real estate stakeholders are markedly bullish about the future and expect the business environment to be upbeat in the coming six months as election polls point towards an imminent change in regime.
"Stakeholders have pinned their hopes on the imminent change in political leadership at the centre. This optimism is not a case in isolation in any particular region in the country but extends to all four regions -- north, west, south and east," Knight Frank Chairman and Managing Director Shishir Baijal said.
The report pointed out both developers and financial institutions expect the real estate sector to perform much better in the coming six months.
"As the country waits for the new government to take charge at the centre, future sentiments have improved across all zones in realty sector. Majority of the developers and financial institutions are quite bullish about the future of the economy as well as the funding scenario.
"The stakeholders are cheerful and expect the business environment to be upbeat in the coming six months," FICCI Secretary General A Didar Singh said.
According to the survey, nearly 67 percent of the respondents foresee an improvement in residential project launches and sales over the next six months, however, price appreciation is likely to remain sluggish.
New office supply is likely to stay in check during the next six months, while stakeholders expect an upsurge in leasing volume by the end of Q3 2014, the report said.