Sentiments Of Real Estate Industry Now Positive
New Delhi: The sentiments among the stakeholders of the real estate industry has come back on positive territory after two consecutive quarters. The Real Estate Sentiment Index for fourth quarter (Q4) of 2019 has been above the 50-mark at 53 according to Knight Frank-FICCI and NAREDCO.
The sentiments for the future of the industry has also come back above the mark of 50 at 59 and reversed the negative sentiments in the previous quarter.
The better sentiments for the current scenario comes after some positive developments in the macro-economic indicators in the country. For example, Purchasing Manager Index (PMI) for the services and manufacturing sector went up significantly in December 2019. Cement sector growth jumped to 4.1 percent in November 2019.
Although it is positive, the sentiments of industry stakeholders remain cautious with a majority of them saying that the prospects of the industry will remain at the same levels and not go down further in the coming six months.
“This optimism is significant in the wake of the continued downslide in India’s overall economic performance. Even while the sector is working towards finding its balance, especially in the residential segment, steps by the government have kept the sector stable in 2019. However, we expect the market to remain cautious and sensitive to even the smallest change as large-scale demand is yet to pick pace,” said Shishir Baijal, Chairman and Managing Director of Knight Frank India.