Real estate slowdown: Survey suggests haircut; developers dub it unfeasible

Lack of available land in urban centres, the rising cost of construction, and higher fees and taxes are key hindrances

Identifying the slowdown in the real estate sector as a key factor in the overall growth deceleration, the Economic Survey 2019-20 suggested that realtors need to take a “haircut” to steer clear of the legacy issues. The measure will also help cleanse the books of its lenders if developers let housing prices fall.

According to the report, the once-booming housing sector is currently reeling from a mounting stockpile, while prices have remained elevated. “Delayed project deliveries and stalled projects leading to a build-up of unsold inventory over the years” has played havoc since 2011. “The decline in household investment in