Decreasing sales risks the developers

Q: Decreasing sales and investors put developers at risk

Shivshankar, Delhi-NCR

6th October 2013

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As a result of this, the inventory level has been rising and buyers are worried whether to invest or not. And when buyers are not buying, investors start facing a cash-crunch which further tightens the cash-flow to developers.

Sukhpreet, Delhi-NCR

6th October 2013

Comment

All these are interrelated and are basically the effects of a cyclic issue which is likely to carry on for few more months. However at such a situation, the buyers actually gain. They can get properties at much lesser prices than the prices which persist when the market is doing well. Unfortunately many end-users fail to understand the context fearing to invest.

Huda Ali, Delhi-NCR

6th October 2013

it seems to be a tough time for some of the developers, as property sales are slowing down while regular short-term investors, who buy many properties and sell them off within months, are also narrowing down. In some cases, such investors are asking builders for refunds. There are few cases in which the investors are even taking the developers to court. Some end-users have even cancelled their bookings.

Anwar Mohammed, Delhi-NCR

6th October 2013

Comment

Real estate market has not been witnessing apparent demand in the last few months, for which developers have been offering discounted rates to push sales. Not only has the new properties, even in resale market the number of sales reduced leading to slight fall in prices.

Sameer Khan, Delhi-NCR

6th October 2013

Adding to it is the speculators, who tend to overprice the properties in areas where in the real estate demand is mostly a created one but those areas may take much longer time to be livable. Owing to economic slowdown, rising costs due to rupee fall and various market speculations, end-users seem to fear a loss in near future and have settled down in a ‘wait and watch mode’ before deciding to invest.

Lohit Raj, Delhi-NCR

6th October 2013

Comment

Owing to sluggishness in the economy, many short-term realty investors have been evading timely payments to developers, since they are observing a reduced number of homebuyers, mainly in the suburbs.

Himangi deshmukh, Delhi-NCR

6th October 2013

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