Housing sector to recover by 2010, says report

June 24th, 2009 - 9:59 pm ICT by IANS  

New Delhi, June 24 (IANS) The residential segment of the Indian realty sector is likely to recover by 2010, though the commercial and retail sectors will remain under stress for next two years, says a report by credit rating agency and industry analyst Crisil.
“The demand in the residential market is expected to turn positive in 2010 owing to improvement in affordability, steady economic growth and greater liquidity,” a 10-city research report by Crisil said.

“Accelerated growth of Indian economy, recovery of global economy, improved liquidity and expected fall in interest rates are key factors that will signal demand revival in the residential segment,” Crisil’s research head Sudhir Nair said.

“This (residential) segment is likely to see a much faster revival due to strong underlying demand for housing and supply coming at attractive price points,” Nair added.

According to the report, the price correction will continue through 2009.

However, the commercial and retail market rentals will continue to fall through the next two years and demand in these two segments will remain under stress, the report said.

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