Real estate sales to go down by half in ongoing fiscal:ICRA
New Delhi: The real estate sales in the country is likely to sales go down by around half in the ongoing fiscal. Ratings agency ICRA says it expects the sales of completed and under-construction properties to tank in the range of 40-60 percent because of the corona pandemic. The preference among home buyers for completed homes is likely to continue. Hence, the developers who have higher proportion of completed stock will get benefitted.
The spend on ongoing real estate is expected to go down by 30 percent in the current fiscal. The project execution has already been hampered owing to several factors like absence of labourers and disruptions in raw material supply.
The new launches by developers are expected to get further hit. They have already been declining in the recent few quarters.
The collections from home buyers are expected to tank 35-40 percent. The committed receivables from the sales already booked have been affected already.
The massive cut n home loan rates in the last few months may help the housing demand to bounce to an extent.