Girish Malaviya – The country’s real estate sector is counting its final breaths. The country’s premier builders have stood on the verge of bankruptcy. Unitech went first, Sahara went, then JP ended, and then Amrapali went coin to be bankrupt. The petition is sitting just a few days ago, there has been news that HDIL, one of the biggest builders of Mumbai has also succumbed and media reports are telling that At least six the biggest companies in the S region are on the verge of bankruptcy.
This is a matter of big companies, but even small companies related to real estate are in bad condition, in such a situation, the most troubled buyers are …… Possession of more than five and a half lakh houses across the country is delayed. The project was launched on or before 2013, this property is about 4 lakh 51 thousand 750 crores.
12.8 lakh houses in thirty major cities of the country are unable to find buyers
According to the Enarock report, the sale of houses has also fallen at a rate of 28 per cent in the last 5 years …… .. While 3.43 lakh houses were sold in the year 2014, 2.48 lakh houses were sold last year. That is, the purchasing power of the people has reduced considerably in Modiraj, an important disclosure has been made in the report that in the last five years, the price of houses has increased by only 7% in seven major cities of the country, but the demand has come down by 28%. . Similarly, the supply of houses has declined by 64% during this period.
Real estate companies have invested extensively in many metro cities including Delhi NCR by taking loans. Due to the lack of buyers, now the pressure on them is increasing, due to not getting loans from NBFCs, companies have to take expensive loans from outside. Thousands of projects across the country are stuck with lack of funds. Due to this, their construction is stopped,
S., managing director of Kotak Investment Advisors. According to Srinivasan, “Banks have to focus on the land to recover their dues. Banks have now had to take possession of the land which has not completed the project and they could be sold with the loan for their loan recovery. In the last 4 years, under the property market, home sales have fallen by about 40% and their prices have fallen by 20% on average. ‘
The launching and sale of residential units has also deteriorated. Residential units sales are expected to fall further, except for the big metro. Now, even in Tier 2 cities like Jamshedpur, there is bad condition. Media reports are telling that big builders who build townships there from 10 years to 10 years ago Used to sell 15 flats. The small builders who build apartments used to book two to three flats a month. The situation has become so bad that the builders are not able to touch this figure even in six months, about 35 percent of the projects are stuck. Those who are ready are not able to sell.
In Jamshedpur, people are not getting registered, last year, 2061 buildings were registered in May, June and July.This year only 1024 buildings have been registered in May, June and July, this is the same situation in Bilaspur in Chhattisgarh. More than eight hundred houses of builders are ready there. There is no one to buy them. In the month where 1 2 houses were sold earlier, today even one or two are hardly sold.
All this situation has come after demonetisation and GST when the real estate sector has been the worst performer in the economy in the last decade and the real estate business has almost collapsed amid the economic downturn.