2nd wave of Covid-19 badly hits Future Sentiment for Indian Real Estate

Ramesh Agrawal ( CA & LL.B)

The 2^nd wave of the COVID-19 have lead to drop in future sentiments index in the real estate sector for a minimum of 1 year .

Due to uncertainties & spread of 2^nd wave of Covid-19, the “Future Sentiment Score' declined from 65 in Quarter 4 of 2020 to 57 in Quarter 1 of 2021 as per survey conducted by Knight Frank-FICCI-NAREDCO.

The 'Current Sentiment Score' recorded a marginal improvement, from 54 in Quarter 4 of 2020 to 57 in Quarter 1 of 2021. As per Knight Frank India, this improvement has been mainly due to the healthy momentum in the Commercial & Residential Real Estate segments during the period October 2020 to February 2021.

Due to increase in COVID-19 cases since March 2021, the search for residential launches and sales has decreased substantially.

The share of respondents that expect the residential market to grow or remain steady in the next 6 Months is exceeding 80%, across parameters of launches, sales and prices.

Office Occupancy levels have been adversely affected due to 2^nd wave of COVID-19 & mobility restrictions & also possible lockdowns in some cities. Due to this office space outlook has been weakened for at least next 6 months.

During the last few quarters, the real estate industry had seen a strong bounce-back, which has kept the future sentiment of stakeholders within the positive zone but with this 2^nd wave the scenario seems to be very tough.

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