NEW DELHI:  The current sentiments of real estate sector stakeholders has been recorded at a record low of 22 on the Knight Frank - FICCI -NAREDCO Real Estate Sentiment Index, according to the joint survey covering April to June 2020. 

According to the report, stakeholders have shown moderate improvement in terms of future sentiment with regards to the next six months, although they remain in the pessimistic zone.

The survey indicated that the ‘Future Sentiment Score’ of the stakeholders has seen improvement at 41 in Q2 2020 against the score of 36 in Q1 2020. 

Shishir Baijal, CMD, Knight Frank India says, “At this juncture, we expect the lockdown to ease by the advent of the festive season, helping to revive economic activity and propel conversion of the pent- up demand.” A score of 50 represents a ‘Neutral’ view; a score above 50 demonstrates a ‘Positive’ sentiment; and a score below 50 indicates a ‘Negative’ sentiment.

The survey covers key supply-side stakeholders which include developers, private equity funds, banks and non-banking financial companies (NBFCs). In the survey, 67 per cent respondents believe that the impact of the crisis will either worsen or continue to remain at the current level for the next six months. With regards to funding, 47 per cent expect a further reduction in the credit flow to the real estate sector over the next six months, whereas 28 per cent believe that the present levels of credit scarcity will continue for this period.