Anand Rathi in a Report expects the property sector to look up. Here is an excerpt from the report published just minutes ago.
India's property sector is emerging from the credit crunch. Ample liquidity, latent demand and property developers’ focus on affordable housing have seen sales pick up in the past two quarters. Given improving consumer sentiment and affordability, we expect the business uptrend to continue.
We do not expect the stimulus measures that helped the property sector tide over the credit crunch to be eliminated quickly, notwithstanding the RBI’s caution regarding the sector. Low interest rates, rising sector credit growth and a buoyant equity market are positives.
The slump in demand last year saw a freeze in property launches. Now, a nascent revival is taking shape, mainly driven by latent demand, better credit availability and property developers’ focus on low-cost affordable housing.
Having learnt their lesson, property developers are no more amassing huge land banks. Their focus is now on execution, on quickly completing projects to move on to newer ones as high demand for affordable homes means they are in a volume game.
