The Real Estate Regulation Bill becoming an Act has boosted sentiments in the real estate market as the sector is expected to become much more transparent and organised which in turn will benefit all stakeholders, including homebuyers, says a report.
“After a lull of five quarters, the overall sentiment has experienced a sharp uptick at the back of the Budget’s focus on real estate and infrastructure. Additionally, the Real Estate Regulation Bill becoming an Act has boosted the sentiment further since the sector is expected to become much more transparent and organised which in turn will benefit all the stakeholders,” says Dr Samantak Das, chief economist and national director, Research, Knight FrankIndia.
The FICCI-Knight Frank Real Estate Sentiment Index that offers an overview on India’s residential and commercial real estate sector for the first quarter of 2016, says that there is considerable improvement in sentiments for the residential sector.
The residential sector, on the other hand, has restored positive sentiment amongst the developers and lenders for the first time after four quarters.
The pressure on unsold inventory has been reducing since the last four quarters due to the limited number of new launches. Developers have been focussing on project completions, instilling confidence in buyers, it says.
The benefits provided to homebuyers in Budget 2016 are also expected to push demand further. Stakeholders are optimistic about residential sales – nearly 54% of the respondents believed that the demand will pick up in the coming six months, it says.
As for the commercial market, stakeholders are quite optimistic about the ofﬁce market, especially in terms of leasing volumes and rental appreciation. Nearly 73% of the respondents expect the leasing volume to improve in the coming six months.
In view of the limited ofﬁce supply and leasing volumes firming up, stakeholders are of the opinion that the ofﬁce space rental appreciation rate will be better in the next six months, it says.