INSUBCONTINENT EXCLUSIVE:
Mumbai: The residential real estate sector continued to suffer from low demand and large inventory overhang last year, a Reserve Bank of
India study has said.
With new launches of residential projects declining, reflecting the large inventory overhang, all India house price
levels had moderated as of end-December, it said.
While Mumbai and the Delhi-National Capital Region reported nearly 5 per cent drop in
house prices, southern metros of Chennai and Bengaluru belied the trend with price increase of nearly 13-16 per cent.
Now, the Covid-19
housing segment will be severely impacted by the Covid-19 outbreak as the target audience typically has limited income and unemployment
Anarock, nearly 610,000 affordable housing units are under construction across the top seven cities in the country, which is 39 per cent of
the total about 1.56 million under-construction housing units in these cities.
Unsold affordable housing stock could rise by 1-2 per cent on
an annual basis, it said.
Ratings agency India Ratings has also said demand for residential real estate could remain suppressed in FY21 in
availability, could add to refinancing and liquidity risks for developers, the agency said in a recent report.
