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Below are Perspective on Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index Q1 2021 by Mr. Ram Raheja, Director, S Raheja Realty

“COVID-19 has impacted all the sectors at large but real estate has always seen a silver lining. As we learn to co-exist with COVID, people who were comfortable with the rental concept are now driven towards owning their own home, primarily for the sense of security that it brings along. Hence amongst all asset classes, the safest investment option at this point is Residential Real Estate. Keeping in mind the current scenario, realty prices could see a sudden, sharp surge in the coming 1-3 years, before it settles down on a higher plane. New project launches by established developers garnered good demand traction as there is more trust from homebuyers in their ability to deliver such products.”

Key Findings of the report : Residential Market Outlook: Launches, Sales and Prices

* Even with the rising COVID infections since March 2021, the share of respondents that expect the residential market to grow or remain steady in the next six months is more than 80%, across parameters of launches, sales and prices.

* In Q1 2021, 65% of the survey respondents were of the opinion that residential launches will increase in the next six months. 26%  respondents felt that new project launches would remain the same in the coming six months.

* On the demand front, 64% of the Q1 2021 survey respondents expect an  increase in sales activity over the next six months. The share of respondents who expected the sales activity to continue at the same pace over the next six months jumped from 13% in Q4 2020 to 23% in Q1 2021.

* With regards to residential prices, 48% of the Q1 2020 survey respondents – up from 38% in Q4 2020 - believe that prices will increase over the next six months, while  43% were of the opinion that prices would remain the same.

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