Published On: Mon, Oct 26th, 2015

It is worth waiting to buy homes till April 2016?

apartmentsBy Accommodation Times News Services

Heavy debt ridden real estate industry is facing acute shortage of funds and almost all big projects are funded by venture capitalist. Its time to exit or pay back those debt or service them. Before March 2016, six to eight big reputed names may turn bad loans. The pressure to complete and repay the debt or equity taken will force real estate market to panically sell. Hence rates are most likely to see a nose fall.

Research shows that almost Rs.3 Lakh crore loans or funds may turn to be bad and such projects may come as NPA (Non Performing Assets) of in the market. A community leader of Dawoodi Bohra said that mandate in the community is to sell real estate at any cost since we are expecting a big fall in property prices. Fund managers wants to liquidate their stocks in under construction projects since 90% of them failed their expectation. The pressure to exit by investors making the sustaining powers of builders weak by every day and D day of 31st March 2016 is coming soon and no sight of market revival, discounts will fall to the pray of home buyers.

Although, builders are optimistic but no sale is the indication of worst to come. Worst it is for builders, better for home buyers. Recent launch by big reputed name in the industry in Mumbai Borivali  area got lukewarm response. While investors booking on bhoomi poojan day, but 90% of them are speculators.

Falling rates in most of the extended suburbs of Mumbai, Delhi and Bangalore, no takers for under construction properties. Projects are delayed for seven to eight years, while buyers are running pillar to post to get their hard earned money.

Pic : for illustration purpose.

Accommodationtimes Institute
Diploma In RERA Diploma In REE Accommodationtimes Institute

About the Author

-

Leave a comment








Subscribe
Subscribe