Retail Real Estate Sentiment Improves in Q3
The retail sentiment towards real estate sector has improved significantly in the third quarter of 2020 - be it the current or future sentiments, according to the 26th Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index Q3 2020 Sur. The 'Current Sentiments Score' (for past six months) also rec
Published -
Oct 27, 2020 8:20 PM
The retail sentiment towards real estate sector has improved significantly in the third quarter of 2020 - be it the current or future sentiments, according to the 26th Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index Q3 2020 Sur. The 'Current Sentiments Score' (for past six months) also recorded substantial improvement to 40 points from the previous quarter low of 22 points. However, it is still in the pessimistic zone. 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 significant drop in home loan interest rates and festive offers has boosted activities in the sector, resulting into the positive outlook. An increase in real estate activities has been a great morale booster for the sector. Quarter 3, 2020 (July-September) saw residential sales volumes increase to 55 per cent of pre-COVID levels, showing signs for revival. Low home loan rates and discounts/ attractive offers for residential homes, have pushed sales velocity in the third quarter. Even while the volumes are yet to catch up to the pre-Covid levels, the spurt has been instrumental in perking up sentiments. Similar positivity is visible for the office sector as well, where we have seen a revival of leasing activities. Zonal score shows the Future Sentiment Index for South and North zones have seen maximum improvement in Q3 2020. South zone score jumped to 65 in Q3 2020 from 42 in Q2 2020 whereas the North region score jumped to 55 in Q3 2020 from 38 in Q2 2020. At the same time, the East zone score has improved to 50 in Q3 2020 from 40 in Q2 2020. For West zone, the score remains in the pessimistic zone at 47 in Q3 2020, though up from 38 in Q2 2020.
Tags : News/Views Real Estate Leasing home loan Retail Pre-Covid Optimism