The residential real estate sector is set to decelerate, according to a report by Nirmal Bang Institutional Equities.
One of the main reasons is that the inventory level is expected to go up over the next one year because of declining sales amid increased launches of new projects.
The consequent weakness in transaction volumes will exert pressure on developers in servicing their debt.
This could lead to a softening of prices as banks could force realtors to cut their inventory levels to repay the debt. Here are some excerpts from the report:
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