In a grim piece of news, rating agency Crisil has forecast that demand for residential property may not pick up over next one-and-half years.
This even after the fact that a number of such project launches are likely in the affordable housing category in the next few quarters.
The forecast of agency is after analysis of crucial markets like Ahmedabad, Bengaluru, Chandigarh, Chennai, Hyderabad, Kochi, Kolkata, Mumbai metropolitan region.
This could easily mean that more pain is in store for colonizers and developers.
Crisil said high property prices have turned end-users into fence-sitters in most micro markets.
Also, concerns over job losses and lack of employment opportunities is curtailing income visibility required for a housing loan, which is typically for a long tenure, keeping away buyers.
According to the agency, rentals are being preferred to buying a property and many nuclear families are opting for rental accommodation in suburban locations than purchasing a house in a peripheral micro market.
Crisil Research senior director Prasad Koparkar, however, said the next few quarters will see more launches in the affordable housing category, or projects with smaller configurations, leading to a reduction in the overall ticket size.>