Housing sector is facing a queer situation of pulls from two sides, as the realty players are still holding on to the high prices but potential buyers are deferring purchases on hopes of a price correction, rating agency ICRA has said.
It added besides high prices and interest rates, another factor that has affected demand for homes during the past one year is the cautious approach that banks have adopted toward fresh disbursements.
So far as the commercial space is concerned, it has also been affected by the current slowdown in the economy and the meltdown in the stock markets.
Apart from the general slowdown, the drivers for the commercial real estate market -- IT and ITeS and financial sector -- have also hit the slow lane, it said.
Faced with a tight liquidity situation and a dip in their profits, financial sector companies have also pared their growth plans.
"This, along with the expectations of over-supply in many pockets within the country, can impact the occupancy levels and rentals of new commercial properties," the report said.
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