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Stakeholders show confidence in residential sector: Knight Frank

2019-05-28

The Indian real estate sector has expressed optimism in the first quarter of 2019 as per Knight Frank?s Q1 2019 Sentiment Index Survey. Real Estate (Regulation and Development) Act, 2016 (RERA), exemption of inventory tax from one to two years in the annual union budget of 2019 and the Good and Services Tax (GST) rate rationalisation have together contributed to boosting the current stakeholder sentiments.

The current sentiment score has inched five points upwards from the preceding quarter and remains in the positive in the first quarter of the new calendar year. The market sentiments that had waned during 2017 with various structural changes in the real estate sector have bounced back and have been steadily improving there since.

KEY FINDINGS OF THE SENTIMENTINDEX

The future sentiment score maintains its positive spell and has moved up to 63 points in Q1 2019. Stakeholders are of the opinion that the transparency brought in by the enormous structural reforms has fundamentally changed the dynamics of the real estate sector for better. The stakeholders are positive of the outcome of governments? efforts to ease the burden of developers by acknowledging the slowdown in the sector. This has boosted the stakeholders? sentiments for the coming six months.
The rationalisation of the GST rate to 5 per cent for under construction flats and 1 per cent for the affordable housing sector has also played a significant part in bolstering real estate sentiments for the coming six months.

RESIDENTIAL SECTOR HOPES TO SEE DEMAND REVIVAL

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