Suspension of construction activities may constrain housing demand: RBI

The suspension of construction activities across the country from mid-March is likely to delay completion of under-construction housing projects and may constrain new demand, the RBI's Financial Stability Report (FSR) said.

With the Covid-19 outbreak, demand and liquidity constraints intensified in the housing sector, it added.

"With the suspension of construction activities across the country from mid-March, completion of under-construction projects is likely to be delayed, constraining new demand," the FSR said.

House sales and launches, which had declined by 16 per cent and 35 per cent (y-o-y) during the third quarter of FY20, were pulled down by around 26