The sentiment in the real estate industry remained pessimistic during July-September due to the COVID-19 pandemic, but the outlook for the next six months has turned optimistic with signs of revival in demand, according to a survey.
Knight Frank-Ficci-NAREDCO on Thursday released their ''Real Estate Sentiment Index Q3 2020 Survey'' of developers, banks, financial institutions and private equity players operating in the sector.
The ''Current Sentiments Score'' improved to 40 points during the July-September period from a record low of 22 points in the previous quarter but remained in the pessimistic zone.
However, the ''Future Sentiment Score'' is in the optimistic zone at 52 points, up from 41 in the previous quarter.
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''.
Knight Frank attributed the revival in sentiments to the "remarkable upturn seen in the real estate business, especially in the residential segment, in the third quarter of 2020 as a result of the unlocking process".
About 57 per cent of the survey respondents opined that the economy is going to grow and improve in the next six months.
The funding outlook also improved compared to the previous quarter. 38 per cent of respondents opined that the scenario would be better in the coming six months, while 31 per cent felt that the current levels of credit availability would continue for the next six months. PTI MJH BAL BAL