Small and medium size developers across the nation are said to be stuck with 5-6 projects on average as demand has been sluggish. They plan to sell 40 per cent of the existing projects at a discount of 25-40 per cent of the original price to fund rest of their projects. Shirole said, “We could see 50 per cent of total real estate market coming under distressed deals. As foreign PE players have the liquidity and staying power, after buying such properties, they can wait 4-5 years or till such time the property market rebounds to sell them at higher price.” However, the outcome of general election can play spoilsport. “A stable government is a prerequisite to these foreign investors. If there are frequent changes at the Centre, they might turn their back for another five years,” cautioned Arun Goel, CEO, DHFL Venture Capital India.
Courtesy : nrirealtynews.com
No comments:
Post a Comment