As per the latest trends in the Indian Real Estate sector, property developers might find it difficult to sustain consistency in property sales. With the focus shifting onto affordable housing, developers are facing low sales in mid-level and premium housing segments.
This phenomenon is leading to housing units piling up and as a result, the inventory of unsold units is going higher. Thanks to improper financial leveraging and inefficient management of business operations, the growth of real estate firms slowed down with the property developers facing severe debt obligation.
In order to fulfil their debt obligationreal estate developers will have to increase their sales by 2.5 times. This can be a tough task looking at the consistency of the volumes of sales.
All these developments indicate the market leaning towards the buyer’s interests, with developers being forced to keep prices low in order to get out of the debt crisis that they are in.
The major problems that property developers are facing in 2019 would be the lack of funding which started a couple of years ago. Gone are those days when developers could collect an advance in payment from homebuyers and sort their finances. It’s not like funding from private equity investments and finance from banking and financial institutions are looking any better for property developers in India.
Compared to the earlier years in this decade, the demand for premium homes has come down. Also, with the Government of India implementing the Housing for All initiative proactively, the prospects for Homebuyers are looking bright. Another aspect affecting all these factors are banks hesitating to finance construction projects by real estate developers, thanks to the new reforms introduced by the Reserve Bank of India (RBI) a couple of years ago.
Interestingly enough, Non-banking Financial Companies (NBFC’s) forayed into lending to property developers but with the recent NBFC crisis taking a drastic turn, NBFC’s had to restrain from financing real estate projects.
Basically, the new RBI guidelines brought the risk associated with lending to real estate up hence, the market refrained from lending to property developers.
As per the latest news in the Indian Real Estate sector, the NBFC’s financing to property developers is a whopping 60% from the earlier 30% of the total finances obtained.
Besides this, the total debt of property developers has risen evidently from Rs 1.2 trillion to Rs 4 trillion in the year 2018. What’s left to be seen is the fresh liquidity from NBFC’s into this sector.
As per the reports by Liases Foras, the inefficiency in this sector is exposed by the lack of financing. Even though there has been phenomenal growth in the debt and inventory of property developers. What’s happened is that developers have borrowed heavily from various sources and built homes, increasing the stock in the market immaterial of the lack of productivity. What’s worse is the dead sales prospects have affected developer’s prospects to meet their debt obligations.
Developers are going through difficult times, borrowing at higher rates to repay their outstanding debt. Eagerly waiting for the NBFC crisis to settle down, they are looking forward to the market returning to normal.
According to the latest trends in the Indian Real Estate sector, it can be seen that homebuyers are exhibiting caution. This can bring sales down. What’s positive for homebuyers is the fact that future prospects of price appreciation are weak, which indicates that the property prices will be in check.
Thanks to all this, developers have been focusing on construction projects that are still in the construction phase instead of newly launched projects. That’s the reason developers are now proactively working towards sales of the unsold inventory of homes.
Looking at this scenario, homebuyers have been taking advantage of desperate property developers. Negotiating huge cash discounts from developers favourite, the market is completely favouring homebuyers. Given its vast population, India has a vast demand for housing that will grow massively in the coming years.
This means that if the pricing is right, sales will flourish. Hence, developers are easily willing to negotiate on pricing more easily than before.
The endgame in case of low sales would be that developers would have to sell their residential projects at low prices or to big cash-rich developers.
We at Homes247.in suggest our homebuyers to plan rightly and maximise their savings by investing in ready to move in homes.
With the current scenario in mind, one can say that developers are in a helpless situation and the negotiation aspect will favour the homebuyers only.
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Well, we are aware that real estate has never exactly been one of those binge-worthy blog categories. It has neither been the kind of topic you could not get enough of, nor is it half as juicy as celebrity gossip.
However, in India, real estate blogs are starting to get clicks and likes, and it has become one of the trending topics. People worldwide are beginning to realize how real estate as an industry affects the economy and how important it is to understand housing trends to enhance their lifestyle.!
The relevance of informative Indian blogs on real estate and finance are at an all-time high now. The youngsters are bidding big on investment options, and brackets such as realty have proved to be highly dependable compared to others.
The Millennials are flooding in to invest in apartments, plots, and villas, and the earliest members of the Gen-Zs' entering the workforce and looking forward to having their own homes. This has only fuelled the growth of digital real estate blogs to keep up with the tech-savvy generations.
Also, the real estate sector has been proving time and again, how reliable an investment choice it is. So, learning about the sector is the smart way to climb up the ranks, and where else can you learn so much except from real estate Blogs! Real estate is the second-largest contributor to the country's GDP; hence there is no doubt that it affects every one of us, whether we see a future in the Real Estate Industry or not. After all, we all live in our homes, and housing is a significant part of the industry.
We know exactly what you need to know and what you like. We know you want to feel engaged and entertained, and at the same time, hot housing news should be fed to you! We have turned the tables, grab a spoon, and start digging!
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As our name implies, we are not limited to realty alone, granted we do Specialize in it. We are all about Homes, and we are in love with Tech and Innovation! Naturally, our blogs cover a myriad of topics related to real estate and housing from Luxury, Lifestyle, Home Decor, Vastu, Real Estate News, Reviews, Tech & much more!
We make every one of our real estate blogs as interesting as it can get and attach with absolutely unique and accurate images, to provide you a better understanding. Not only do we cover a wide range of topics, but we also cover them at the right time. We update you on our socials such as Facebook, Instagram, Linkedin, Pinterest, and Twitter on every trending topic, so you are never miss anything and worry about being left behind!
However, we never go out of hand with our Indian real estate blogs that our beloved Readers have come to love over the years.
Everything in India is a state of constant flux; maybe that's why we Indians became one of the most adaptable and cosmopolitan people in the world!
If the nation's elements are shifting its focus, how can real estate be any different? Indian Real Estate Sector is perhaps one of the most dynamic ones in the entire world. Since the Real Estate in India is yet to be organized entirely, the variations in one segment affect another in ways difficult to comprehend.
The complexity and nuances can be understood only by reading about what is going on in the sector. Like we mentioned above, it affects every one of us. Hence it is essential to keep up to date.
With its ever-changing shifts and tides, it's virtually impossible to keep track of the sector's latest trends and sink our anchor deep. That's where we come in! We are just one google search away!
We also try to solve every home-related query through our Indian real estate blogs. And that's not all. We provide you insights on technologies that make the modern taste and rate of development possible, detailed analysis on real estate projects, insights on loans and taxes, advice on the home buying process, and articles on health and fitness. We provide you information about the trending topics in the Indian real estate industry.
We also host video podcasts named Expert's Voices, where we discuss with the leading players in the industry about market scenarios, offers, anything and everything related to real estate.
In addition, we host Real Estate News so you can stay updated on the sporadic events that happen around the country concerning Indian Real Estate. We also make short and easy to understand real estate video blogs.
We have got so many topics to read about that even if you have years of experience or are just curious and googling to get some ideas about Indian real estate blogs, you will find the best ones here.
At Homes247.in, we strive to provide you only the best real estate blogs. Our blogs are always entertaining; even the dullest subject we touch upon, we try to make it engaging. We make sure the best of the best is are the only standard we keep ourselves at when it comes to our service or our Indian real estate blogs.
Our team is made of a dynamic group of keen hands-on expert researchers who work tirelessly along with passionate and knowledgeable content writers to bring to your fingertips the world of real estate.
On every one of our real estate blogs, we research vigorously, write creatively, carefully compile, and thoughtfully curate the best real estate blogs, especially for you, from India's best content writers and contributors.