Things are not looking up for India's residential real estate sector. Given India's consumption slowdown across industries, sentiments among real estate sector's stakeholders have only worsened in the second quarter, a survey by consultancy Knight Frank, industry bodies FICCI and NAREDCO found. The stakeholders have downgraded the outlook for the ongoing six months to 'pessimistic' in the Real Estate Sentiment Index Q2 2019.
In a note, Knight Frank noted that "the overall slowdown in the economy, coupled with factors like the NBFC crisis, developer defaults and bankruptcies, have slackened the sentiments of the sector, especially for the residential segment. The situation is further compounded by factors like the ongoing liquidity crisis and a diminutive demand scenario."
Here is a summary of what the Index stated:
Niranjan Hiranandani, National President of NAREDCO, noted that "liquidity being the oil of the 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. As known globally, real estate and infrastructure development have proved to be the economic drivers, Indian stands no different."