Owing to weak consumer sentiments despite the recent announcement of various sops for the buyers, India’s residential real estate sector outlook remains negative, the report said. According to the rating agency Icra, factors responsible for negative outlook are demand-supply mismatches in many markets and product segments, leveraged balance sheets and continuing funding challenges for developers, challenging macro-economic environment, and low affordability levels for buyers.
“Overall we expects a negative outlook on the Indian residential real estate sector. Consumer sentiment remains weak, notwithstanding recent sops for the sector announced in the union budget,” Icra group head Shubham Jain said. Icra further noted that the rationale to revise the rates has been to reduce the high headline GST rates, which have resulted in lower sales of under-construction houses.