Tough times ahead for residential developers with funding and sales

NBFC-bank credit impact on residential realty market will lead to price corrections, project takeovers and consolidation, say experts

The recent liquidity and asset-liability crisis in the financial sector the second half of the financial year has given rise to a credit crunch whose impact is likely to be felt across the residential real estate market, say experts. 

Data compiled shows that sales of residential housing units are up, while unsold inventory has come down during the first nine months of CY2018 (see table). New housing project launches have slowed down to 1.277 million units in three months ended September 2018. 

"Most of the sales have come from the affordable and mid-income housing spaces, while premium project sales in