The real estate market, which has shown signs of recovery earlier this year, has witnessed an improvement in sentiment during the second quarter of this year.
According to a joint study conducted by property consultancy Knight Frank and FICCI, office markets across the top six cities of the country including Bengaluru, Delhi-NCR, Mumbai and Pune, witnessed good traction in the first two quarters of 2016. More than 60% of the respondents believe that leasing volumes are going to improve further in the next six months.
The real estate sentiment index is based on a quarterly survey of key supply-side stakeholders, which include developers, private equity funds, banks and non-bank financial companies (NBFCs).
The survey comprises questions pertaining to the economy, project launches, sales volume, leasing volume, price appreciation and funding. A score above 50 demonstrates a positive outlook and below 50 indicates negative sentiment. The current study has indicated a score of 53, which is in the positive territory for the second quarter in a row.
“Real estate stakeholders seem markedly bullish about the future in view of the new reforms and expect the business environment to be upbeat in the coming six months. Going forward, the score is expected to move in a narrow range, although very much in the positive territory,” Knight Frank said in the report.
The optimism is observed at the zone level as well. The future sentiment score has improved across all zones exhibiting a strong positive outlook. With a score of 70, the South zone seems the most confident about the future, the report added.