Covid-19 second wave: Future realty sentiment takes a dip

26 Apr 2021 CW Team

According to the survey, the economy's return to normalcy will depend on the pace of vaccination and the time taken to control the second wave of the pandemic. Apart from the pace of vaccination, government decisions on lockdown restrictions will largely determine the real estate sector's performance in the coming months, the survey said.

In Q1 2021, the future sentiment score saw a decline from 65 in Q4 2020 to 57 in Q1 2021 due to uncertainties resulting from the spread of the second wave of Covid–19 infections. However, it remained in the optimistic zone.

The south zone has seen a marginal decline from 66 in Q4 2020 to 63 in Q1 2021, while the score for the north zone has fallen from 58 in Q4 2020 to 56 in Q1 2021. The Future Sentiment score of the west region witnessed a significant drop from 66 in Q4 2020 to 53 in Q1 2021, while the score for the east zone has fallen from 65 in Q4 2020 to 53 in Q1 2021, it said.

The 'Current Sentiment score' recorded a marginal improvement, inching up from 54 in Q4 2020 to 57 in Q1 2021. This improvement can be attributed to the healthy momentum in the commercial and residential real estate segments during Q4 2020 and during January-February 2021.

A score of above 50 indicates 'Optimism' in sentiments, a score of 50 means the sentiment is 'Same' or 'Neutral', while a score below 50 indicates 'Pessimism'.

Hampered by the second Covid-19 wave concerns, the Future Sentiment score of stakeholders for the next six months has fallen across regions, even while it remains in the optimistic zone. Similarly, the Q1 2021 outlook of supply-side stakeholders reflects caution on the future of the real estate for the next six months, even if their scores remain in the optimistic zone.

With the substantial increase in Covid cases since March 2021, the outlook for residential launches and sales has softened in Q1 2021.

Similarly, the second wave and the resultant mobility restrictions and possible lockdowns in some cities have adversely impacted office occupancy levels. This has resulted in the weakening of the office market outlook for the next six months. On the macroeconomic front, the pace of economic revival seems to have slowed down, with some key economic indicators showing weakening over the last two months. Influenced by the change in macroeconomic developments, stakeholder outlook on the overall economic momentum and on credit availability has turned cautious in Q1 2021, the survey said.

Stakeholder outlook, on the credit availability front, has shifted from positive to observant as 81% of the Q1 2021 survey respondents, down from the 87% of Q4 2020 expect the funding scenario to either improve or remain the same in the coming six months.

Image Source

Also Read: Govt, realty sector help workers cope with second Covid wave

Also Read: CREDAI Pune writes to Maha govt

The 28th edition of the Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index Q1 2021 (January - March 2021) survey has revealed that the six-month outlook for the real estate sector has weakened across the parameters of demand, supply and pricing in Q1 2021, as the second wave of Covid-19 rages in the country, adversely impacting several industry sectors. According to the survey, the economy's return to normalcy will depend on the pace of vaccination and the time taken to control the second wave of the pandemic. Apart from the pace of vaccination, government decisions on lockdown restrictions will largely determine the real estate sector's performance in the coming months, the survey said. In Q1 2021, the future sentiment score saw a decline from 65 in Q4 2020 to 57 in Q1 2021 due to uncertainties resulting from the spread of the second wave of Covid–19 infections. However, it remained in the optimistic zone. The south zone has seen a marginal decline from 66 in Q4 2020 to 63 in Q1 2021, while the score for the north zone has fallen from 58 in Q4 2020 to 56 in Q1 2021. The Future Sentiment score of the west region witnessed a significant drop from 66 in Q4 2020 to 53 in Q1 2021, while the score for the east zone has fallen from 65 in Q4 2020 to 53 in Q1 2021, it said. The 'Current Sentiment score' recorded a marginal improvement, inching up from 54 in Q4 2020 to 57 in Q1 2021. This improvement can be attributed to the healthy momentum in the commercial and residential real estate segments during Q4 2020 and during January-February 2021. A score of above 50 indicates 'Optimism' in sentiments, a score of 50 means the sentiment is 'Same' or 'Neutral', while a score below 50 indicates 'Pessimism'. Hampered by the second Covid-19 wave concerns, the Future Sentiment score of stakeholders for the next six months has fallen across regions, even while it remains in the optimistic zone. Similarly, the Q1 2021 outlook of supply-side stakeholders reflects caution on the future of the real estate for the next six months, even if their scores remain in the optimistic zone. With the substantial increase in Covid cases since March 2021, the outlook for residential launches and sales has softened in Q1 2021. Similarly, the second wave and the resultant mobility restrictions and possible lockdowns in some cities have adversely impacted office occupancy levels. This has resulted in the weakening of the office market outlook for the next six months. On the macroeconomic front, the pace of economic revival seems to have slowed down, with some key economic indicators showing weakening over the last two months. Influenced by the change in macroeconomic developments, stakeholder outlook on the overall economic momentum and on credit availability has turned cautious in Q1 2021, the survey said. Stakeholder outlook, on the credit availability front, has shifted from positive to observant as 81% of the Q1 2021 survey respondents, down from the 87% of Q4 2020 expect the funding scenario to either improve or remain the same in the coming six months. Image Source Also Read: Govt, realty sector help workers cope with second Covid waveAlso Read: CREDAI Pune writes to Maha govt

Infrastructure Energy

22 Oct 2025

KEC Secures Rs 10, 380 Mn Substation Order in Saudi Arabia

KEC International Ltd., a global infrastructure EPC major, and an RPG Group company, has secured a new order worth Rs 10,380 million for the Design, Supply and Installation of a 380 kV GIS Substation in Saudi Arabia.Vimal Kejriwal, MD & CEO, KEC International Ltd., commented, “We are delighted with the successive order wins in our T&D business. In a landmark achievement, we have secured our largest ever substation order. This prestigious order in the Middle East has widened our portfolio and strengthened our presence in the region. With this strategic win, our year-to-date or..

Infrastructure Urban

22 Oct 2025

Central Bank of India executes first fully digital SCF deal on PSB Xchange

In a major advancement for India’s banking sector, Central Bank of India (CBI) has successfully completed the country’s first fully digital supply chain finance (SCF) transaction on PSB Xchange—a unified multi-lender platform launched by PSB Alliance. PSB Xchange is designed to connect public and private sector banks, NBFCs, and fintechs with corporates and their channel partners to facilitate supply chain finance and small business loans. The transaction marks the first time a fintech-originated corporate lead has been seamlessly processed through the PSB Xchange ecosystem. The lead fl..

Infrastructure Energy

22 Oct 2025

Atlanta Electricals secures Rs 1,835 Mn transformer order from BNC Power

Atlanta Electricals Limited (“Atlanta”) has secured an order worth Rs 1,835 million from BNC Power Projects Ltd for the supply of extra high voltage (EHV) transformers and a bus reactor for its Pugal site. The contract includes a mix of 315 MVA, 400 KV and 100 MVA, 132 KV transformers along with a 400 KV bus reactor. The project scope encompasses design, manufacturing, testing, and supply to the project site. Deliveries will be sequenced following engineering and drawing approvals, offering multi-quarter execution visibility and ensuring a steady production run-rate. The order will be ex..