Investor play cash-flow issues for realtors
Developers, who were unable to sell a thousand flats in nearly a year, have sold over 16,000 across the country in just the last two quarters. But the feel-good run may be over before long, say market watchers.
Between April and September this year, DLF, the largest real estate developer in the country, has launched and sold over 2,000 flats in its mid-income housing range. Unitech, the second-largest player, generated Rs 4,000 crore of sales in seven months by selling 10.11 million square feet from over 30 new launches. Among others, Parsvnath Developers booked 400-500 flats, while Omaxe claims sales of 400 flats in the same period.
All thanks to aggressive marketing, advertising and tie-ups with brokers and investors.
But lest this be construed as a sign that the sector has turned around, market watchers would like to caution us it’s a bubble. Going by them, developers, who are riding high on affordable housing, could soon face execution delays and payment issues as a significant portion, around 50% or more, of flat buyers are speculative investors.
More : dnaindia.com