Rising costs are depressing demand and hitting profits
Following India’s financial media, one gets the impression that the revival of the country’s real estate sector is just around the corner, with top companies reporting robust sales. But according to the official statistics, India’s construction sector actually contracted by 2.8% in the three months to the end of December last year. The reason for the apparent contradiction is that India’s real estate sector is witnessing a K-shaped recovery, wherein small real estate companies with little in the way of financial muscle are being squeezed out by larger players when it comes to clearing unsold housing inventories and launching new projects. Poor regulations are making things worse.
https://asia.nikkei.com/Opinion/India-s-troubled-real-estate-industry-needs-urgent-reform
Source: Nikkei Aisa
