“There is no appetite for an initial public offering for real estate companies, as there is no visibility of recovery of the industry in the near future. The best way is to sell commercial assets — either by floating a REIT
or a complete sale,” added the banker.
Analysts said in the coming months, more developers will sell their rental income business to manage liquidity. The prognosis for the industry remains grim. The Reserve Bank of India in its recent policy said construction activity remained tepid in the sector, while cement production fell and finished steel consumption moderated sharply in June.
“The real estate sector was already dealing with a lot of challenges and the Covid-19-induced inflation pressures and the overwhelming supply inventory in the market have only compounded the difficulties. We hope the government addresses some of the much-needed requirements of the real estate sector like the single-window clearance mechanism and granting of industry status,” said Sanjay Dutt, managing director and CEO, Tata Realty and Infrastructure.
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