Monetary policy committee of the rbi, Bank

The real estate sector which saw some revival during the last quarter of 2019 received a serious setback with the outbreak of coronavirus and subsequent lockdown. The current sentiment of real estate stakeholders in India dropped to an all-time low of 31 in the first quarter (January to March) 2020.As per the 24th Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index Q1 2020 Survey conducted in the first week of April, "The real estate sector that had just about started showing some signs of revival during the last quarter of 2019 has suffered a severe setback due to the COVID-19 crisis."The survey was conducted with more than 250 stakeholders."The future sentiment score outlining the industries' market expectations has also dipped well into the pessimistic zone at a score of 36 in Q1 20 against the score of 59 in Q4 2019," it read.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.The sentiment score had revived in the Q4 2019 after being in the pessimistic zone (below 50 mark) for two consecutive quarters. The revival was however short-lived as the current sentiment score has dropped to 31 in Q1 2020.The mood of the stakeholders as regards the overall economy and the real estate sector had been in the pessimistic zone in the second and third quarter of 2019 due to credit squeeze and overall economic slowdown.With the slew of measures announced by the government to revive the sector, the last quarter of 2019 infused confidence in the real estate market.The creation of a stressed asset fund of Rs 25,000 crore to provide last-mile funding to stalled affordable housing projects was a welcome step in this direction. However, according to the survey, COVID-19 outbreak has marred the stakeholder's sentiments.The future sentiment score has sharply fallen to 36 in Q1 2020 after having bounced back in Q4 2019. Looming uncertainty due to the pandemic has adversely impacted the stakeholder sentiments for the coming six months as well.The lockdown will translate into a vicious sequence of stalled construction, delays in project deliveries, delays in loan repayments and debt servicing to banks and an overall slump in demand due to uncertainties in employment and salary cuts. All these factors have marred the future sentiment score of stakeholders.Shishir Baijal, Chairman and Managing Director of Knight Frank India, said the pandemic has created an unprecedented condition which is impacting global markets and societies. There is already a severe shortage of liquidity due to the complete standstill that most economies have come to.Even while the government and the Reserve Bank of India have provided some stimulus measures, further support may be required to help the real estate sector and for the economy to stay afloat during the crisis. Managing liquidity and sustaining through the length of this pandemic will be critical for economic survival in the post-pandemic era, he said."The real estate segment specifically will have a long journey to make. This crisis has retracted the end-user confidence to its lowest levels ever, which will push any kind of real estate purchase decisions to the distant future. The already ailing real estate sector has been crippled with this pandemic, making it imperative for government support to bring it back on track," said Baijal.( With inputs from ANI )

Monetary Policy Committee Of The RbiFOLLOW

Monetary policy committee of the rbi, Latest News

Union Home Minister Amit Shah on Friday said that Prime Minister Narendra Modi-led Central government is leaving no stone unturned in the fight against COVID-19, "ensuring minimum disruption in people's lives while planning for a strong and stable In ...

BJP National President JP Nadda on Friday stated that the Narendra Modi government is taking all necessary steps to help the economy cope with the COVID-19 crisis. He added that Reserve Bank of India's announcements today on providing liquidity and ...

The Reserve Bank of India has hinted at further cuts in interest rates to maintain adequate liquidity in the system and counter the intensification of risks to growth and financial stability brought on by COVID-19. ...

Banks will not be required to pay any further dividend from their profits from financial year 2019-20 as the Reserve Bank of India wants these financial institutions to conserve capital so as to deal with heightened uncertainty amid the coronavirus s ...

The Indian stock market lost most of its initial gains despite the announcement of fresh liquidity measures by the Reserve Bank of India (RBI). ...

To mitigate any economic fallout on financial liquidity due to Covid-19 pandemic, the Reserve Bank of India on Friday announced a set of new measures including a reduction in reverse repo rate. ...

The Reserve Bank of India has turned its attention to meeting the funding requirements of NBFCs, MFIs and housing finance by providing special refinance facilities of Rs 50,000 crore to All India Financial Institutions (AIFIs) such as the NABARD and ...

The real estate sector which saw some revival during the last quarter of 2019 received a serious setback with the outbreak of coronavirus and subsequent lockdown. The current sentiment of real estate stakeholders in India dropped to an all-time low o ...