COVID-19 crisis pushes real estate industry to all-time low in Q1 2020: Survey

As country battles COVID-19 pandemic, Real Estate Sentiment Index is witnessing an all-time low, said an industry report on Thursday. Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index Q1 2020 Survey shows that current sentiments of real estate stakeholders, developers, and financial institutions, in India have dropped to an all-time low score of 31, during January-March (Q1), 2020.

survey also reveals that ''future sentiment score'' outlining industries' market expectations may also witness a dip into pessimistic zone at a score of 36 in Q1 2020 against score of 59 in Q4 2019. As per report, real estate sector has begun showing some signs of revival after suffering a severe setback in  last quarter of 2019 due to COVID-19 crisis.

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Government's aid to real estate sector

Chairman and Managing Director of Knight Frank India, Shishir Baijal said that pandemic condition has hit global markets and societies, causing is a severe shortage of liquidity. Despite stimulus measures provided by Government, real estate sector requires support to stay afloat during crisis.

Government infused confidence in real estate market by creating a stressed asset fund (AIF) of Rs 250 billion to revive sector in  last quarter of 2019. However, COVID-19 outbreak has marred stakeholders' sentiments.

According to Niranjan Hiranandani, National President, NAREDCO, economy has come to a standstill due to pandemic and its recovery curve will depend on fiscal stimulus rolled out by Government. Although, he said that consumers and developers are showing a great amount of resilience and aptability during this period. He said real estate sector is expecting a slowdown across industry post-Covid-19 crisis.

Amid extension of nationwide lockdown till May 3, Ministry of Home Affairs (MHA) on Wednesday, allowed functioning of manufacturing and or industrial establishments in Special economic zones (SEZs), Export oriented units (EoUs), industrial estates, and industrial townships by following social distancing in its new guidelines. MHA also exempted services of manufacturing of IT hardware and of essential goods and packaging. 

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