According to a report from Knight Frank India and FICCI, the five point drop in the future Sentiment Index levels in real estate market indicates a definite rationalisation in shareholders expectation about the pace at which changes will be effected in the country
During the fourth quarter of 2014, stakeholder sentiments across all zones have witnessed a major drop, mainly due to subdued festive sales and oversupply within residential space, says the Real Estate Sentiment Index for Q4 2014 report. The report was released by Knight Frank India and Federation of Indian Chambers of Commerce & Industry (FICCI).
According to the report, during the first quarter, when the current and future sentiment scores have dipped, stakeholders sentiments are still comfortably over the 50 mark and thus underscore the positive momentum that has gripped the Indian economic and business environment over the past six months.
"Though the Indian economic story is headed in the right direction post the change of guard at the centre, the five point drop in the future Sentiment Index levels indicates a definite rationalisation in the expectation of stakeholders regarding the pace at which changes will be effected in the country. The residential market has disappointed stakeholders, but sentiments are still positive for the first half of 2015. It remains to be seen how things will pan out as reducing inflationary pressures and policy implementation help revive the economy," the report says.