FICCI : Industry's Voice for Policy Change

Finance Minister Nirmala Sitharaman's announcement to extend additional tax deduction of Rs 1.5 lakh on home loan interest till March 2022 and tax holidays on affordable housing projects in the Union Budget 2021 will boost demand for residential properties, according to real estate developers and consultants.

Announcing relief to affordable housing and rental housing in the Union Budget 2021, the Finance Minister proposed to extend the eligibility period for claim of additional deduction for interest of Rs. 1.5 lakh paid for loan taken for purchase of an affordable house to 31st March, 2022.

In order to increase the supply of affordable houses, she also announced extension of eligibility period for claiming tax holiday for affordable housing projects by one more year to 31st March, 2022. For promoting supply of affordable rental housing for the migrant workers, the Minister announced a new tax exemption for the notified affordable rental housing projects.

Sanjay Dutt, MD & CEO, Tata Realty and Infrastructure Limited appreciated Finance Minister’s plan to introduce a Bill to set up a DFI (developmental financial institution) for long-term funding infra projects with a capital of Rs 20,000 crore and lending Rs 5 lakh crore in the next 3 years. He also said, Acknowledging the role of NRI homebuyers and increased interest amid the pandemic, the government’s decision to reduce NRI residency limit will help. Raising customs duty on solar inverters to 20% from 5% is likely to add to the cost of the commercial and residential developments while monetization of land is likely to provide more land for development and arrest its rising cost.

Satish Magar, President CREDAI National said, Continuous focus on expanding highways, developing infrastructure, road & rail transport, metro rail projects shall play a crucial role in connecting all corners of the country further boosting demand for housing in these areas, thereby promoting economic activity and job creation.

Jaxay Shah, Chairman CREDAI National said “This is clearly a budget for growth with next level reforms, focusing on the healthcare, infrastructure and financial sectors and establishes a stable tax regime and higher borrowing for CAPEX.

Geetamber Anand, CMD ATS Infrastructure ltd and Co - chairman, Real Estate Committee, FICCI said Union Budget 2021-2022, is the much needed catalyst for India’s post-covid revival.

"However, what the sector requires is immediate infusion of liquidity to give a kick-start to the stalled projects and support the 270 allied industries who are dependent on the realty sector for its survival and revival," he added.

Kamal Khetan, Chairman and Managing Director, Sunteck Realty Ltd said, "For real estate, the move to extend the tax holiday available for the purchase of affordable houses as well as for the affordable rental housing projects is a welcoming move as it would further strengthen the confidence among both developers and homebuyers."

Quicke News | Feb 02, 2021

Union Budget 2021: Extension of tax sops for affordable housing to strengthen confidence among developers and homebuyers, say realtors

Finance Minister Nirmala Sitharaman’s announcement to extend additional tax deduction of Rs 1.5 lakh on home loan interest till March 2022 and tax holidays on affordable housing projects in the Union Budget 2021 will boost demand for residential properties, according to real estate developers and consultants.

Announcing relief to affordable housing and rental housing in the Union Budget 2021, the Finance Minister proposed to extend the eligibility period for claim of additional deduction for interest of Rs. 1.5 lakh paid for loan taken for purchase of an affordable house to 31st March, 2022.

In order to increase the supply of affordable houses, she also announced extension of eligibility period for claiming tax holiday for affordable housing projects by one more year to 31st March, 2022. For promoting supply of affordable rental housing for the migrant workers, the Minister announced a new tax exemption for the notified affordable rental housing projects.

Sanjay Dutt, MD & CEO, Tata Realty and Infrastructure Limited appreciated Finance Minister’s plan to introduce a Bill to set up a DFI (developmental financial institution) for long-term funding infra projects with a capital of Rs 20,000 crore and lending Rs 5 lakh crore in the next 3 years. He also said, Acknowledging the role of NRI homebuyers and increased interest amid the pandemic, the government’s decision to reduce NRI residency limit will help. Raising customs duty on solar inverters to 20% from 5% is likely to add to the cost of the commercial and residential developments while monetization of land is likely to provide more land for development and arrest its rising cost.

Satish Magar, President CREDAI National said, Continuous focus on expanding highways, developing infrastructure, road & rail transport, metro rail projects shall play a crucial role in connecting all corners of the country further boosting demand for housing in these areas, thereby promoting economic activity and job creation.

Jaxay Shah, Chairman CREDAI National said “This is clearly a budget for growth with next level reforms, focusing on the healthcare, infrastructure and financial sectors and establishes a stable tax regime and higher borrowing for CAPEX.

Geetamber Anand, CMD ATS Infrastructure ltd and Co – chairman, Real Estate Committee, FICCI said Union Budget 2021-2022, is the much needed catalyst for India’s post-covid revival.

“However, what the sector requires is immediate infusion of liquidity to give a kick-start to the stalled projects and support the 270 allied industries who are dependent on the realty sector for its survival and revival,” he added.

Live Mint | Jan 28, 2021

Realty sentiment improves in Dec quarter

The realty sector is finally turning optimistic with a sentiment index score of 54 in the December quarter, with a positive demand outlook for the next six months, according to a survey by Knight Frank-FICCI-Naredco.

The Current Real Estate Sentiment Index is at its highest level in over a year, up from 31 points in April-June 2020. A score of above 50 reflects optimism.

Real estate sales in the June 2020 quarter had crashed nearly 80%, compared to the same quarter in 2019, following the pandemic, hurting customer sentiments. Subsequently, a recovery in demand for residential and office space helped lift sentiments. Residential sales picked up during the three months ended December on the back of attractive payment schemes from developers, low interest rates, and a cut in stamp duty by Maharashtra and Karnataka governments. With the Future Sentiment Score witnessing a surge from 52 points in the September quarter to 65 in the December quarter, the sector expects demand to pick up further.

“Geographically, the western part of the country saw the sharpest jump in Future Sentiment Index. This zone’s future sentiment jumped to 66 points in Q4 2020 from 47 points in Q3 2020. With respect to stakeholders, both developers and non-developers (banks, non-bank lenders and private equity funds) recorded an improvement in Future Sentiment score in Q4 2020," the report added.

The Economic Times | Jan 28, 2021

Realty business confidence makes a comeback as realtors, banks, PE firms optimistic

With improving indicators and the Indian economy’s gradual return to normalcy post the Covid19 pandemic, the uncertainty over sustainability of growth momentum in the real estate sector is getting replaced with rising business confidence among developers and financiers.

While real estate activity in both residential and commercial segments saw an upturn following in the last few months, many were doubtful of the momentum after factoring the conversion of pent-up demand. The business confidence is witnessing a gradual comeback aided by the government’s supportive measures, record low interest rates and the resultant pick-up in end-user demand.

The future sentiment score, captured by a Knight Frank, FICCI and NAREDCO joint survey, has witnessed a robust surge to 65 points from 52 points in the September quarter. The current sentiment score, for the first time in 2020, entered the optimistic zone at 54 points in the fourth quarter, a significant jump of 14 points over the previous quarter.

“As we begin our journey into 2021 with a positive outlook, it is important to closely watch the performance of the key economic indicators in the coming months to check the sustainability of the growth seen in the last two quarters of 2020. Equally crucial is the development of the vaccine and its widespread availability for the masses. As these two factors will largely determine the performance of the real estate sector in the coming months,” said Shishir Baijal, CMD, Knight Frank India

Geographically, the western region saw the sharpest jump in future sentiment index at 66 during the quarter from 47 in the previous quarter. North With respect to stakeholders, both developers and non-developers including banks, non-banking finance companies and private equity funds, recorded an improvement in future sentiment score during the quarter.

“The survey mirrors recovery expectations of not just real estate, but the economy. Investments in real estate over the recent past reflect positive sentiments on part of investors, domestic as well as global, on the resurgence in the Indian economic growth story. This is a clear indicator of the bullish growth story of Indian Real Estate and reflects on the growth prospects of 270 allied industries as also job creation,” said Niranjan Hiranandani, National President, NAREDCO.

A score of above 50 signifies ‘Optimism’ in sentiments, a score of 50 means the sentiment is ‘Same’ or ‘Neutral’, while a score below 50 shows ‘Pessimism’. A cumulative score is arrived at on the basis of responses and assigned weightage.

“After almost a year of working remotely during a global pandemic, the workforce is already thinking about their gradual returns to the workplace. The signs of recovery are already showing… The insurgent growth is going to impact logistics related infrastructure including warehousing, Positively. Within real estate, certain asset classes like retail may have a longer recovery cycle, while other sectors like data centres, cloud kitchens and co-working may see an uptick in demand in the immediate to medium term,” said Raj Menda, Joint Chairman, FICCI Real Estate Committee.

The future sentiment score has climbed up mirroring the strong recovery expectations prevalent in the market. Other regions including the east and north also improved, while the already bullish south region improved marginally.

Stirring demand and festivities in the December quarter has helped not only the realty sector but also the economy at large. The improvement in high-frequency indicators recorded since September continued in December too.

The Goods and Services Tax (GST) collections in December were at a record high whereas the Purchasing Managers’ Index (PMI) for manufacturing recorded a fifth straight month of expansion. This economic growth environment has raised the market’s expectations of recovery in the coming six months.

Any further demand boosting measures announced by the government in the upcoming Union Budget 2021, will provide strong fillip to the property sector.

Money Control | Jan 28, 2021

Real estate sentiment scores at a year-high in Q4 2020; 2021 outlook optimistic: Sentiment Index

Supportive measures from the government, RBI and the resultant pick-up in end -user demand has helped boost sentiment and given a fillip to the real estate sector. In fact, for the first time in 2020, the 'Current Sentiment Score' entered the optimistic zone at 54 points in Q4 2020, a significant jump of 14 points over the previous quarter.

A score of above 50 indicates ‘Optimism’ in sentiments, a score of 50 means the sentiment is ‘Same’ or ‘Neutral’, while a score below 50 indicates ‘Pessimism’.

According to the 27th Edition of Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index Q4 2020 (October – December 2020) Survey, for the first time in 2020, the 'Current Sentiment Score' entered the optimistic zone at 54 points in Q4 2020, a significant jump of 14 points over the previous quarter. It was at 40 in Q3 2020.

The October-December 2020 quarter continued to see an improvement in the business momentum. Office space leasing grew as global players began acting on their pending and anticipated lease plans encouraged by the news of multiple potential COVID vaccines. Traction in the residential segment continued in Q4 2020 on the back of festive discounts, pent-up demand and low home loan interest rates.

The 'Future Sentiment Score’ also witnessed a robust surge to 65 points in Q4 2020 from 52 points in Q3 2020. It was at 52 in Q3 2020, mirroring the strong recovery expectations prevalent in the market.

Stirring demand and festivities of Q42020 gave a strong fillip not just to the real estate sector but also to the economy at large. The improvement in high-frequency indicators recorded since September 2020 continued in December 2020 as well. Goods and Services Tax (GST) collections in December 2020 are at a record high whereas the Purchasing Managers’ Index (PMI) for manufacturing recorded a fifth straight month of expansion.

This economic growth environment has raised the market’s expectations of recovery in the coming six months and is reflected in the climbing Future Sentiment score, Knight Frank India said.

Geographically, the western part of the country saw the sharpest jump in future sentiment index. This zone’s Future Sentiment jumped to 66 in Q4 2020 from 47 in Q3 2020. With respect to stakeholders, both developers and non-developers (which include banks, NBFCs and PE funds) recorded an improvement in Future Sentiment score in Q4 2020.

The West Zone has seen the highest jump in the Future Sentiment score, climbing to 66 in Q4 2020 from 47 in Q3 2020. East zone stakeholder outlook also saw a substantial leap in future sentiments, jumping to 65 in Q4 2020 from 50 in Q3 2020. The Future Sentiment score for the North region went up to 58 in Q4 2020 from 55 in Q3 2020 while that of the already bullish South region improved marginally to 66 in Q4 2020 from 65 in Q3 2020.

In Q4 2020, the Future Sentiment index for all regions is higher than Q4 2019 (pre-COVID level). This reflects the strong optimism prevailing in the sector as we enter 2021, Knight Frank India said.

On the macroeconomic front, 82 percent of the survey respondents opined that the economy would grow further in the coming six months as opposed to the 57 percent respondents with the same view in Q3 2020. Similarly, the share of survey respondents with the opinion that economic health will worsen in the next six months went down substantially to 7 percent in Q4 2020 from 31% in Q3 2020.

In terms of credit availability, 87 percent of the Q4 2020 survey respondents believed that the funding scenario would either improve or continue to remain the same over the next six months.

Further, 77 percent of the Q4 2020 survey respondents were of the opinion that residential sales would increase over the next six months, up from 66 percent in Q3 2020. With regards to the office market, 60 percent of the Q4 2020 survey respondents, up from 47 percent in Q3 2020, believed that office leasing activity would increase over the next six months.

The outlook of supply side stakeholders has moved into the optimistic zone in Q4 2020 for both developers and non-developers (non-developers include banks, financial institutions and PE funds).

Developer sentiments picked up on the back of resolving supply-side challenges and growing demand. The Q4 2020 performance of residential market across the top eight cities in India was encouraging, as sales velocity returned to pre-COVID levels. Office transactions also grew in the last quarter of 2020 with occupiers beginning to execute their pending and future lease plans. This jump in demand has strengthened the developer outlook of real estate market for the coming six months, it said.

Fueled by the increase in residential sales and the pick-up in office transactions, real estate lending of banks and financial institutions also received a fillip. Accordingly, the future outlook of non-developers i.e. the financial stakeholders of the real estate sector improved in Q4 2020. Their Future Sentiment score jumped to 63 in Q4 2020 from 50 in Q3 2020, moving into the optimistic zone for the first time since Q4 2019, the Sentiment Index said.

“Both the Current and Future Sentiment scores in Q4 2020 have seen a great surge in the latest survey backed by a revival in both residential and office market real estate that has been highly encouraging. The sector saw a lift in the market's mood and increased stakeholder expectations of a stronger recovery in the next six months,” said Shishir Baijal, chairman and managing director, Knight Frank India.

“As we begin our journey into 2021 with a positive outlook, it is important to closely watch the performance of the key economic indicators in the coming months to check the sustainability of the growth seen in the last two quarters of 2020. Equally crucial is the development of the vaccine and its widespread availability for the masses. As these two factors will largely determine the performance of the real estate sector in the coming months,” he said.

“As reflected in the 27th Knight Frank - FICCI - NAREDCO Real Estate Sentiment Index Q4 2020 Survey, it was the resurgence that was powering optimism in real estate. The survey mirrors recovery expectations of not just real estate, but the economy. Investments in real estate over the recent past reflect positive sentiments on part of investors, domestic as also global, on the resurgence in the Indian economic growth story,” said Niranjan Hiranandani, National President - NAREDCO and ASSOCHAM and Founder and MD, Hiranandani Group.

“Stakeholder outlook for the office market has improved substantially in Q4 2020 as leasing activity gained momentum. The residential market outlook has revived further in Q4 2020, across all parameters, reflecting the increased traction in this segment. The impact of renewed consumer demand for residential realty has resulted in high levels of registration data, these transactions have lifted market sentiment,” he said.

Outlook | Jan 27, 2021

Sentiment in Real Estate turns optimistic in Oct-Dec: Report

The sentiment in the real estate industry turned optimistic during October-December 2020 and the outlook for the next six months is positive on the back of revival in demand for both residential and office properties, according to a survey by Knight Frank India-FICCI-Naredco.

The 27th edition of 'Real Estate Sentiment Index Q4 2020 survey' of developers, banks, financial institutions and private equity players operating in the sector was released on Monday in a video-conference.

As per the report, the 'Current Sentiments Score', for the first time in 2020, entered the optimistic zone at 54 points in Q4 (October-December) 2020, a significant jump of 14 points over the previous quarter.

The 'Future Sentiment Score' witnessed a sharp jump to 65 points in Q4 2020 from 52 points in Q3 2020. A score of above 50 indicates 'Optimism' in sentiments, a score of 50 means the sentiment is 'Same' or 'Neutral', while a score below 50 indicates 'Pessimism'.

With respect to stakeholders, both developers and non-developers (which include banks, NBFCs and PE funds) recorded an improvement in Future Sentiment Score.

"Both the Current and Future Sentiment scores in Q4 2020 have seen great surge in the latest survey backed by revival in both residential and office market real estate that have been highly encouraging," said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

The sector saw a lift in the market's mood and increased stakeholder expectations of a stronger recovery in the next six months, he said.

"As we begin our journey into 2021 with a positive outlook, it is important to closely watch the performance of the key economic indicators in the coming months to check the sustainability of the growth seen in the last two quarters of 2020," Baijal said.

As per the survey, 77 per cent of the respondents were of the opinion that residential sales would increase over the next six months, up from 66 per cent in Q3 2020.

With regards to the office market, 60 per cent of the Q4 2020 survey respondents, up from 47 per cent in Q3 2020, believed that office leasing activity would increase over the next six months.

Naredco President Niranjan Hiranandani said: "As reflected in the survey, it was a resurgence that was powering optimism in real estate. The survey mirrors recovery expectations of not just real estate, but the economy."

Investments in real estate over the recent past reflect positive sentiments on part of investors, domestic as also global, on the resurgence in the Indian economic growth story, he said.

"This is a clear indicator of the bullish growth story of Indian real estate and reflects on the growth prospects of 270 allied industries as also job creation. Recently, we have seen this investment being in the office spaces segment, which reflects the confidence of investors in the Indian GDP’s positive growth potential," Hiranandani said.

Rajani Sinha, Chief Economist and National Director Research, Knight Frank, said, the economic indicators in India have started improving in the last few months with the economy moving towards normalcy.

The critical aspect would be at what level the growth momentum is sustained after taking care of the pent-up demand, she added.

"The real estate sector has seen a boost in sentiments, aided by supportive measures from the government, the RBI and the resultant pick-up in end-user demand. Any further demand boosting measures announced by the government in the upcoming Union Budget, will give a strong fillip to the real estate sector," Sinha said.

Going forward, the trajectory of the real estate sector would be dependent on the economic recovery and efficacy of India's COVID vaccination drive, she said.

Yahoo News | Jan 27, 2021

Sentiment in real estate turns optimistic in Oct-Dec; outlook for next 6 months positive: Report

The sentiment in the real estate industry turned optimistic during October-December 2020 and the outlook for the next six months is positive on the back of revival in demand for both residential and office properties, according to a survey by Knight Frank India-FICCI-Naredco.

The 27th edition of 'Real Estate Sentiment Index Q4 2020 survey' of developers, banks, financial institutions and private equity players operating in the sector was released on Monday in a video-conference.

As per the report, the 'Current Sentiments Score', for the first time in 2020, entered the optimistic zone at 54 points in Q4 (October-December) 2020, a significant jump of 14 points over the previous quarter.

The 'Future Sentiment Score' witnessed a sharp jump to 65 points in Q4 2020 from 52 points in Q3 2020. A score of above 50 indicates 'Optimism' in sentiments, a score of 50 means the sentiment is 'Same' or 'Neutral', while a score below 50 indicates 'Pessimism'.

With respect to stakeholders, both developers and non-developers (which include banks, NBFCs and PE funds) recorded an improvement in Future Sentiment Score.

'Both the Current and Future Sentiment scores in Q4 2020 have seen great surge in the latest survey backed by revival in both residential and office market real estate that have been highly encouraging,' said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

The sector saw a lift in the market's mood and increased stakeholder expectations of a stronger recovery in the next six months, he said.

'As we begin our journey into 2021 with a positive outlook, it is important to closely watch the performance of the key economic indicators in the coming months to check the sustainability of the growth seen in the last two quarters of 2020,' Baijal said.

As per the survey, 77 per cent of the respondents were of the opinion that residential sales would increase over the next six months, up from 66 per cent in Q3 2020.

With regards to the office market, 60 per cent of the Q4 2020 survey respondents, up from 47 per cent in Q3 2020, believed that office leasing activity would increase over the next six months.

Naredco President Niranjan Hiranandani said: 'As reflected in the survey, it was resurgence that was powering optimism in real estate. The survey mirrors recovery expectations of not just real estate, but the economy.' Investments in real estate over the recent past reflect positive sentiments on part of investors, domestic as also global, on the resurgence in the Indian economic growth story, he said.

'This is a clear indicator of the bullish growth story of Indian real estate and reflects on the growth prospects of 270 allied industries as also job creation. Recently, we have seen this investment being in the office spaces segment, which reflects the confidence of investors in the Indian GDP’s positive growth potential,' Hiranandani said.

Rajani Sinha, Chief Economist and National Director Research, Knight Frank, said, the economic indicators in India have started improving in the last few months with the economy moving towards normalcy.

The critical aspect would be at what level the growth momentum is sustained after taking care of the pent-up demand, she added.

'The real estate sector has seen a boost in sentiments, aided by supportive measures from the government, the RBI and the resultant pick-up in end-user demand. Any further demand boosting measures announced by the government in the upcoming Union Budget, will give a strong fillip to real estate sector,' Sinha said.

Going forward, the trajectory of the real estate sector would be dependent on the economic recovery and efficacy of India's COVID vaccination drive, she said.

The Daily Guardian | Jan 27, 2021

Real estate sentiment scores at a year-high in Q4

The 27th edition of Knight Frank-FICCI-NAREDCO real estate sentiment index Q4 2020 (October to December) survey released on Wednesday shows the current sentiment score entering optimistic zone at 54 points, marking a significant jump of 14 points over the previous quarter.

The future sentiment score also witnessed a robust surge to 65 points in Q4 from 52 points in Q3. Geographically, the western region saw the sharpest jump in future sentiment index to 66 points from 47 points.

With respect to stakeholders, both developers and non-developers including banks, non-banking finance companies and private equity funds recorded an improvement in future sentiment score in Q4.

On the macroeconomic front, 82 per cent of survey respondents opined that economy will grow further in the coming six months as opposed to 57 per cent respondents with the same view in Q3. The survey was conducted from January 7 to 14.

Similarly, the share of survey respondents with the opinion that economic health will worsen in the next six months went down substantially to 7 per cent in Q4 from 31 per cent in Q3 2020.

In terms of credit availability, 87 per cent of the Q4 2020 survey respondents believed that the funding scenario will either improve or continue to remain the same over the next six months.

Besides, 77 per cent of the Q4 survey respondents were of the opinion that residential sales will increase over the next six months, up from 66 per cent in Q3 2020.

With regards to the office market, 60 per cent of the Q4 survey respondents believed that office leasing activity will increase over the next six months.

“As we begin our journey into 2021 with a positive outlook, it is important to closely watch the performance of key economic indicators in coming months to check sustainability of growth seen in the last two quarters of 2020,” said Shishir Baijal, Chairman and Managing Director of Knight Frank India.

“Equally crucial is the development of the vaccine and its widespread availability for the masses. These two factors will largely determine the performance of real estate sector in coming months,” he said in a statement.

Deviscourse | Jan 27, 2021

Sentiment in real estate turns optimistic in Oct-Dec; outlook for next 6 months positive: Report

The sentiment in the real estate industry turned optimistic during October-December 2020 and the outlook for the next six months is positive on the back of revival in demand for both residential and office properties, according to a survey by Knight Frank India-FICCI-Naredco.

The 27th edition of 'Real Estate Sentiment Index Q4 2020 survey' of developers, banks, financial institutions and private equity players operating in the sector was released on Monday in a video-conference.

As per the report, the 'Current Sentiments Score', for the first time in 2020, entered the optimistic zone at 54 points in Q4 (October-December) 2020, a significant jump of 14 points over the previous quarter. The 'Future Sentiment Score' witnessed a sharp jump to 65 points in Q4 2020from 52 points in Q3 2020. A score of above 50 indicates 'Optimism' in sentiments, a score of 50 means the sentiment is 'Same' or 'Neutral', while a score below 50 indicates 'Pessimism'.

With respect to stakeholders, both developers and non-developers (which include banks, NBFCs and PE funds) recorded an improvement in Future Sentiment Score.

''Both the Current and Future Sentiment scores in Q4 2020 have seen great surge in the latest survey backed by revival in both residential and office market real estate that have been highly encouraging,'' said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

The sector saw a lift in the market's mood and increased stakeholder expectations of a stronger recovery in the next six months, he said.

''As we begin our journey into 2021 with a positive outlook, it is important to closely watch the performance of the key economic indicators in the coming months to check the sustainability of the growth seen in the last two quarters of 2020,'' Baijal said.

As per the survey, 77 per cent of the respondents were of the opinion that residential sales would increase over the next six months, up from 66 per cent in Q3 2020. With regards to the office market, 60 per cent of the Q4 2020 survey respondents, up from 47 per cent in Q3 2020, believed that office leasing activity would increase over the next six months.

Naredco President Niranjan Hiranandani said: ''As reflected in the survey, it was resurgence that was powering optimism in real estate. The survey mirrors recovery expectations of not just real estate, but the economy.'' Investments in real estate over the recent past reflect positive sentiments on part of investors, domestic as also global, on the resurgence in the Indian economic growth story, he said.

''This is a clear indicator of the bullish growth story of Indian real estate and reflects on the growth prospects of 270 allied industries as also job creation. Recently, we have seen this investment being in the office spaces segment, which reflects the confidence of investors in the Indian GDP's positive growth potential,'' Hiranandani said.

Rajani Sinha, Chief Economist and National Director Research, Knight Frank, said, the economic indicators in India have started improving in the last few months with the economy moving towards normalcy. The critical aspect would be at what level the growth momentum is sustained after taking care of the pent-up demand, she added.

''The real estate sector has seen a boost in sentiments, aided by supportive measures from the government, the RBI and the resultant pick-up in end-user demand. Any further demand boosting measures announced by the government in the upcoming Union Budget, will give a strong fillip to real estate sector,'' Sinha said.

Going forward, the trajectory of the real estate sector would be dependent on the economic recovery and efficacy of India's COVID vaccination drive, she said.

Big News Network | Jan 27, 2021

Real estate sentiment scores at a year-high in Q4

The 27th edition of Knight Frank-FICCI-NAREDCO real estate sentiment index Q4 2020 (October to December) survey released on Wednesday shows the current sentiment score entering optimistic zone at 54 points, marking a significant jump of 14 points over the previous quarter.

The future sentiment score also witnessed a robust surge to 65 points in Q4 from 52 points in Q3. Geographically, the western region saw the sharpest jump in future sentiment index to 66 points from 47 points.

With respect to stakeholders, both developers and non-developers including banks, non-banking finance companies and private equity funds recorded an improvement in future sentiment score in Q4.

On the macroeconomic front, 82 per cent of survey respondents opined that economy will grow further in the coming six months as opposed to 57 per cent respondents with the same view in Q3. The survey was conducted from January 7 to 14.

Similarly, the share of survey respondents with the opinion that economic health will worsen in the next six months went down substantially to 7 per cent in Q4 from 31 per cent in Q3 2020.

In terms of credit availability, 87 per cent of the Q4 2020 survey respondents believed that the funding scenario will either improve or continue to remain the same over the next six months. Besides, 77 per cent of the Q4 survey respondents were of the opinion that residential sales will increase over the next six months, up from 66 per cent in Q3 2020.

With regards to the office market, 60 per cent of the Q4 survey respondents believed that office leasing activity will increase over the next six months. "As we begin our journey into 2021 with a positive outlook, it is important to closely watch the performance of key economic indicators in coming months to check sustainability of growth seen in the last two quarters of 2020," said Shishir Baijal, Chairman and Managing Director of Knight Frank India.

"Equally crucial is the development of the vaccine and its widespread availability for the masses. These two factors will largely determine the performance of real estate sector in coming months," he said in a statement.

News Chant | Jan 27, 2021

Real Estate Sentiment scores at a year-high in Q4 2020

News Wrap India | Jan 27, 2021

Home sales at pre-Covid level; overall sentiment optimistic: Knight Frank

Sales of residential models throughout eight main Indian metros – Kolkata, Chennai, Pune, National Capital Region (NCR), Mumbai, Bengaluru, Hyderabad and Ahmadabad – reached pre-Covid ranges at 61,593 models within the December 2020 quarter (This fall’CY20) and the sentiment is probably going to enhance additional, based on Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index for the October – December 2020 interval. On common, these cities recorded complete gross sales of 61,467 models in 2019, data present.

The residential section outlook, based on the survey findings, was supported by pent-up demand, multi-decadal low house mortgage rates of interest, enticing residential prices and state government incentives equivalent to discount of stamp responsibility in Maharashtra.

“The residential market outlook has revived further in Q4CY20, across all parameters, reflecting the increased traction in this segment. The impact of renewed consumer demand for residential realty has resulted in high levels of registration data, these transactions have lifted market sentiment” stated Dr. Niranjan Hiranandani, nationwide president – NAREDCO and ASSOCHAM and Founder & MD, Hiranandani Group.

Going forward, 77 per cent of the survey respondents within the December 2020 quarter imagine residential gross sales would rise over the following six months, up from 66 per cent within the September 2020 quarter and 31 per cent within the June 2020 quarter. However, solely 38 per cent of the respondents imagine that the prices of residential models will enhance going forward, down marginally from 40 per cent in September 2020 quarter.

“With regards to the office market, 60 per cent of the Q4 2020 survey respondents, up from 47 per cent in Q3 2020, believed that office leasing activity would increase over the next six months,” survey findings recommend.

Sentiment improves

The Current Sentiment score – a gauge utilized by the realty advisor to evaluate the present temper amongst related stakeholders – has jumped significantly to 54 within the October – December 2020 quarter (This fall’CY20) from 40 in July – September 2020 interval (Q3’CY20) and 22 in April – June 2020 (Q2’CY20), coming into the optimistic zone for the primary time in 2020. The Future Sentiment score, too, confirmed an enchancment – rising to 65 in (This fall’CY20) from 52 in (Q3’CY20), mirroring the sturdy restoration expectations prevalent out there.

“Both the Current and Future Sentiment scores in Q4’CY20 have seen surge backed by revival in both residential and office market. As we begin our journey into 2021 with a positive outlook, it is important to closely watch the performance of key economic indicators in the coming months to check the sustainability of the growth. Equally crucial is the development of the vaccine and its widespread availability for the masses. These two factors will largely determine the performance of the real estate sector in the coming months,” stated Shishir Baijal, chairman and managing director at Knight Frank India.

The Real Estate Sentiment Index, based on the Knight Frank – NAREDCO report, is predicated on a quarterly survey of key supply-side stakeholders, which embrace builders, personal fairness funds, banks and non-banking monetary corporations (NBFCs). A score of 50 represents a impartial view or establishment; a score above 50 demonstrates a positive sentiment; and a score beneath 50 signifies a negative sentiment.

West India leads optimism

Among areas, West Zone (West India) noticed the very best bounce within the Future Sentiment score, based on the Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index, reaching 66 within the December 2020 quarter from 47 within the September 2020 quarter.

“East zone stakeholder outlook also saw a substantial leap in future sentiments, jumping to 65 in Q4’CY20 from 50 in Q3’CY20. The Future Sentiment score for the North region rose to 58 in Q4’CY20 from 55 in Q3’CY20, while that of the already bullish South region improved marginally to 66 in Q4’CY20 from 65 in Q3’CY20,” the survey findings recommend.

India Right Now News | Jan 27, 2021

Home sales at pre-Covid level; overall sentiment optimistic: Knight Frank

Business Standard | Jan 27, 2021