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Dear ck.kislay,
You are subscribed to the thread "Real Estate Bubble Set to Burst Again in India" by MANOJa, there have been 1 post(s) to this thread, the last poster was MANOJa.
https://www.indianrealestateforum.com/forum/city-forums/ncr-real-estate/gurgaon-real-estate/13876-real-estate-bubble-set-to-burst-again-in-india
These following posts were made to the thread:
https://www.indianrealestateforum.com/forum/city-forums/ncr-real-estate/gurgaon-real-estate/13876-real-estate-bubble-set-to-burst-again-in-india
Posted by: MANOJa
On: March 1 2018 10:45 AM
[h=1]Ind-Ra maintains negative outlook for residential realty amid rising input costs[/h] Ind-Ra expects residential unit sales to remain muted in in 2018-19 and EBITDA margins to remain under pressure owing to a rise in input costs and an increase in selling and promotion costs amid weak demand conditions[URL="https://realty.economictimes.indiatimes.com/author/479214943/kailash-babar"]Kailash Babar[/URL] | ETRealty | February 28, 2018, 16:49 IST [URL="https://realty.economictimes.indiatimes.com/tag/mumbai"]MUMBAI[/URL]: [URL="https://realty.economictimes.indiatimes.com/tag/ratings+agency+india+ratings+and+research"]Ratings agency India Ratings and Research[/URL] ([URL="https://realty.economictimes.indiatimes.com/tag/ind-ra"]Ind-Ra[/URL]) has maintained a negative outlook for the residential real estate sector owing to weak demand conditions and rising input costs. Moreover, it has a stable outlook for the [URL="https://realty.economictimes.indiatimes.com/tag/commercial+real+estate"]commercial real estate[/URL] sector on expectations of stable demand conditions as grade A supply remains limited. However, the agency has revised the outlook for the rated entities in its portfolio to stable from negative, as the negative impact of the sector is largely mitigated by the fact that these companies have predictable cash flows and moderate credit profiles. Moreover, they have strong execution and sales track records, which increase their financial flexibility, the ratings agency said in a release. Ind-Ra expects residential unit sales to remain muted in in 2018-19 and [URL="https://realty.economictimes.indiatimes.com/tag/ebitda"]EBITDA[/URL] margins to remain under pressure owing to a rise in input costs and an increase in selling and promotion costs amid weak demand conditions. �This would lead to an increase in the inventory and debt levels of real estate firms in FY19. Refinancing risk remains at an elevated level owing to weak credit profiles. The quality of inventory would be the key differentiating factor for companies in this sector to determine their relative refinancing capability,� said Niraj Rathi, Associate Director, India Ratings and Research. Affordable housing projects of Ind-Ra-rated companies witnessed a rise in their contribution to the overall sector sales to 20.0%-40.0% in FY18. The uptrend is likely to gain momentum, with bank credit drifting towards the affordable segment. [url]https://realty.economictimes.indiatimes.com/news/industry/ind-ra-maintains-negative-outlook-for-residential-realty-amid-rising-input-costs/63111715[/url]
With warm regards,
Team IREF
With warm regards,
Team IREF
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