Fitch Ratings has today said in a just published Special Report that its 2010 Outlook for the Indian real estate sector remains Negative; however, the sector could exhibit signs of stability by the second half of the year.Fitch notes that the fundamentals of India's real estate sector are improving, as seen by better liquidity and improved demand in the residential segment. The agency expects growth in 2010 to be driven by government support, especially for the affordable housing segment, improved access to debt and capital markets, and the recovery of real estate demand.
Yet, there are concerns that the government may roll out moderately adverse policies to keep property prices in check when economic conditions become more stabilized.
In addition, the government may also find it politically difficult to provide a supportive environment if developers continue to increase real estate prices.
The full report, "Indian Real Estate 2010: On the road to Recovery", is available on the Fitch Ratings' website: 'www.fitchratings.com'.
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