Rating agency Fitch has forecast a stable outlook for the Indian real estate market, and expects that unsold stock will fall from a peak level, and the sector will see consolidation with the implementation of a new regulatory law. The Real Estate (Regulation & Development) Act, which was passed by the Parliament last year, has been implemented from May this year.
"We expect unsold inventory to fall in 2018, as most developers will focus on completing their property projects to comply with RERA," Fitch said.
The agency said the unsold inventory for a sample of seven large developers increased to Rs 66,800 crore at the end of 2016-17, from Rs 63,100 crore at the end of previous year.
Stating that RERA would drive consolidation in 2018, Fitch said the implementation of the new law would continue to reduce the pace of new launches as developers focus on completing existing projects. The introduction of GST is shifting demand towards completed properties as they attract lower taxes, the statement said.
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