Real estate outlook dips to 21-month low

The recently released data of Real Estate Sentiment Index Q2 2019 survey points toward the bleak future sentiment score of the sector, which stood at 47 during the quarter. It was conducted collaboratively by National Real Estate Development Council (Naredco), real estate services firm Knight Frank and FICCI. The survey stated that weak demand, inventory overhang, developer defaults coupled with the worsening of the crisis engulfing non-banking financial companies (NBFCs) had dried up funding for the sector.

Niranjan Hiranandani, Nardeco president, opined, “The deepening economic slowdown compounded with subdued investment outlook and sluggish consumption appetite have hampered GDP growth traction. Liquidity being the oil of India’s growth engine needs a quick fix resolution enabling Indian real estate to play its role in enhancing GDP growth in tandem with ample job creation”.