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'Sentiment among builders, lenders improves in Oct-Dec'

By IANS | Updated: January 14, 2020 21:20 IST

The sentiments among real estate developers and lenders, including NBFCs and banks, improved in the October-December quarter, a joint survey by Knight Frank, NAREDCO and FICCI said on Tuesday.

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The revival in sentiments comes after pessimistic sentiments in the previous two quarters.

The Real Estate Sentiment Index is based on a quarterly survey of key supply-side stakeholders which include developers, private equity funds, banks and Non-Banking Financial Companies (NBFCs).

"The current sentiment score has revived in the fourth quarter of 2019. Inching to 53 and getting back in the optimistic zone after two consecutive quarters in the pessimistic zone (below 50 mark), the score is a welcome revival," the report said.

It noted that a recovery in the current sentiment score hints that the stakeholders are "cautiously optimistic".

"A recovery in the current sentiment score hints that the stakeholders are cautiously optimistic as they keep a close watch over the implementation of the slew of measures undertaken by the government to revive the sector," it said.

Improvement in the current sentiment for the sector is also in line with recent improvement in some macro-economic indicators such as improvement in the Purchasing Manager Index (PMI) for the services and manufacturing sector in December 2019.

Further, the future sentiment score that had gone in the red for the first time in the preceding quarter of Q3 2019 (July-September) has bounced back to 59 in Q4 2019, it said, adding that though in the optimistic zone now, the outlook of stakeholders remains cautious with a majority of them opining that the market will remain at the same levels and not go down further in the coming six months.

A score of over 50 signifies 'optimism' in sentiments, a score of 50 means the sentiment is 'same' or 'neutral', while a score of below 50 shows 'pessimism'.

( With inputs from IANS )

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