India’s buildings sector to expand by 6.6% next year driven by fiscal support, govt policies: Fitch

Fitch Solutions said it expects the country’s residential and non-residential buildings sector to expand by 6.6 per cent, in real terms, next year, driven by fiscal support and a continued focus on the provision of affordable housing in urban areas.

“Short-term expansion of India’s building sector will be driven by a mixture of fiscal support and government policies supporting the housing market, as well as heightened activity within the logistics, retail and industrial buildings sectors,” it said in a statement. Long-term growth, on the other hand, will mainly be driven by country’s massive population, which requires continued investments into residential building construction sector, the statement said.

Instances of stalled housing projects have been on the rise over the course of 2019, due to a credit crunch sparked by a series of defaults by non-bank financial companies, resulting in a decreased access to funding for both developers and homebuyers.