As higher property prices hurt the buyers’ sentiments, the number of property sales has gone downward, leading the developers into deep troubles.
Property buyers remain reluctant to buy any property as the property prices have reached the sky. Due to this, the property sales have fallen, affecting the developers severely.
In fact the developers find no way to offload their unsold properties. Recently a report came up from Delhi-NCR where the number of unsold homes alone reaches around 1.5 lakh.
Though the developers deny this, the truth is nothing much. In most of the cities, the number of new launches has also been cut short. All these are considered as side-effects of low property sales.
By reducing the number of new launches, developers expect to sell off their remaining unsold properties. However this has not yet found the desired aim as still the property sales are down and show no improvement at all.
Lower property sales have pushed the developers into financial crises, besides affecting their financial stability badly.
As per some of the latest reports, many of the developers have defaulted payments. Defaulted payment by four developers has been verified.
Mantri Realty is one of the worst affected by lower home sales. For paying the interest of a Rs.19 Cr loan, the Mumbai based construction firm has asked a non-banking financial firm to issue its FD worth Rs.4 Cr.
While the developer sought the employment of a judicial arbitrator, SE Investments has moved the court to prevent the developers from selling some 32 flats. The news was reported by Economic Times.
Interestingly the report came on the same day in which Mantri Realtors Group announced its new investment plan.
The group recently announced that it will raise over Rs.1500 Cr for developing 2300 housing units under six residential projects. The group plans to complete the projects within 3 -4 months.
