Ground Realities Hit Property Sector

Regulatory impasse, liquidity crisis and tepid sales make the going tough

- Meera Siva

When a year comes to an end, at least some would recall it fondly, smiling over what it brought them. But 2019, with less than two weeks to go, could not end soon enough for most stakeholders in the housing market.

The green shoots of recovery that seemed visible by the end of 2018 — after the onslaught of demonetisation, GST and other economic ‘shocks’ — died somewhat quickly. No amount of rate cuts could bring cheer to the market or jump-start demand and activity. To rub salt into the wound, the liquidity crisis hit cash-strapped developers very hard, pushing many from the proverbial frying pan into the fire of defaults.

Regulatory woes