Realty stakeholders’ sentiments at an all-time low, says survey amid lockdown

NEW DELHI: Facing the impact of coronavirus outbreak and the subsequent nationwide lockdown, the current sentiments of real estate stakeholders in India have dropped to an all-time low in the first quarter (January-March) of 2020, said the 24th Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index Q1 2020 Survey.

The report said the future sentiment outlining the industry’s market expectations has also dipped into the pessimistic zone in Q1 2020.

The current and future sentiment scores — 31 and 36 respectively — has nosedived to the lowest levels in Q1 2020. A score of over 50 signifies ‘Optimism’ in sentiments, while a score of below 50 shows ‘Pessimism’.

The survey said the lockdown will translate into a vicious sequence of stalled construction, delays in project deliveries, loan repayments and debt-servicing to banks, and an overall slump in demand due to uncertainties in employment and salary cuts.

More than 60 per cent of the stakeholders have opined that the pandemic situation will adversely impact residential new launches (65%), sales (65%) and prices (64%) in next six months.

While the Centre on Wednesday allowed resumption of road construction and other projects from April 20, the industry hinted it is not enough to lift the sector from the current crisis.