Office space and logistics sub sector continue to be the most popular among long-term and patient investors. Although residential sector continues to face head winds, there could be opportunities brewing in the distressed space. The current state of the sector has caused market participants to adopt more cautious approach with long term horizon.
Key challenges
- Difficulty in accessing finance by real estate developers from banks / NBFCs and lack of long-term cheap finance for large projects.
- Unsold inventory of residential units specifically under construction projects
- Affordability of homes in urban areas after considering the additional transaction costs.
- Impact of GST on (i)