As per the reports of FICCI-Knight Frank, the sentiment of real estate stakeholders are continues to fall

Real estate developers continue to restrict the launch of latest residential project.

Real estate developers in all over the country including top six cities such as; Chennai, Hyderabad, Mumbai, NCR,, Pune and Bengaluru are continue to restrict the launch of latest residential project because of oversupply and much more inventory from last 8 quarters, as per the statement of Samantak Das, who is the Chief Economist as well as Director research of Knight Frank India, which is property advisory firm. Most of the launches are from the January to March 2015 quarter however; in the same period last year the sales volume was remain same. According to the Index of Real Estate Sentiment for the duration of January to March in 2015, the new launches record the marginal improves in last six months.

The same report suggested that the majority of the real estate developers and financial institutions foresee the prices remain in the coming six months. Real estate stakeholders were bullish for the residential sales before the general election in the year 2014. The real estate sentiments have dropped in last one year and so the sales volume as well. Only about 15 per cent of the respondents are expecting the residential sales will get the better move in upcoming months. It is expected that the increase in prices will reduced to less than half in the third quarter of 214.  In present only 33 per cent respondents believe that the property prices will increase the coming months.

It is expected that soon real estate market will witness the fresh supply as we have seen in 2014 and the same trend will continue in 2015.Whereas; there will be drop in the transaction volumes in the first quarter of 2105 and it was approx. 15 per cent drop in the absorption of office and commercial spaces, in short we can say that it was due to the lack of quality supply of office space supply however; some big ticket transactions are still pending. With the reports its clear that real estate market will see the fresh supply in coming years and the majority of the supply will be by stakeholders who had inventories. They have also expressed their positive look towards the rental appreciation for the duration of next six months.

The real fact is that its looks like that economy is revving up with REITs as it has led 68 per cent of the respondents to believe that the latest supply in the office and commercial supply will witness the uptake in the upcoming months. The real estate sentiments in reference to the office space and rental appreciation are the highest price from last six quarters. With significant it’s clear that 85 per cent of the respondents want the rentals to see them as increase going forward.

The stakeholders from all over the country are continue to be optimistic about the future of real estate market in the country as west and north zones are experiencing the dip in the real estate sentiment levels during the first quarter of 2015 compared to the last quarter, whereas; the east and south zones are expecting the revival in real estate sentiment.