Second Wave Of COVID-19 Affected Sentiments Of Real Estate Stakeholders

Second wave influenced the future sentiments of the real estate stakeholders
Second wave influenced the future sentiments of the real estate stakeholders

The second wave of COVID-19 in the country has dampened the future sentiments in the real estate sector. Leading real estate consultant Knight Frank India released the 28th edition of the 'Real Estate Sentiment Index Q1 2021' (January -March 2021) Survey on Thursday, April 22, in association with the Federation of Indian Chambers of Commerce and Industry or FICCI as well as the National Real Estate Development Council or NARDECO. According to the findings of the report, the second wave of COVID-19 influenced the future sentiments of the real estate stakeholders in the country.

The survey showed that the future sentiment score registered a decline from 65 in October-December 2020 to 57 in January-March 2021, amid uncertainties resulting from the relentless rise of new COVID-19 infections in the second wave. The future sentiment score of stakeholders for the next six months fell across regions due to concerns over the second wave of the pandemic. Although the score remains in the optimistic zone. The outlook in the January-March quarter of supply-side stakeholders reflected caution for the next six months.

According to the report, the outlook for the residential launches and sales softened in the January-March quarter. The majority of the respondents expect the residential market to either remain steady or grow in the next six months. Additionally, the second wave and the restrictions on mobility impacted the office occupancy levels, which weakened the market outlook for the next six months.

“With the precautionary measures and revival reforms, real estate witnessed historic sales over the course for last three quarters. However, post the revision in stamp duty from April, the overall sentiment for real estate investment and the demand of residential asset class witnessed a dip which has reduced the overall pace,'' said Mr. Rohit Poddar, Managing Director, Poddar Housing and Development Limited.

''However, with the foresight of the first wave and the precautionary measures introduced by the government, real estate is hopeful to maintain stability. The government's decision to initiate a wider vaccination drive will help in mitigating the impact of the second wave while mobilizing the sectors to push the economy further on the growth track,'' added Mr Poddar.