Real Estate Developers are in trouble due to market melt down. Realty consultants say with very few buyers in the market, majority of projects have not taken off in various markets. Major real estate developers like DLF, Unitech, Parsvnath Developers,Omaxe and Emaar MGF are moving out from their core areas to develop projects in different cities. Nearly, 65-70% of these projects have not taken off. DLF, for example, have pulled out of many commercial projects in Gurgaon and Manesar. In the same way, Unitech’s projects in Kolkata and Mohali have also not taken palce as per the plan. Parsvnath Developers has also hold back its plans to construct several projects that were in the queue.
Executive director at consultancy Cushman & Wakefield says that the performance of any player depends on the cost of land acquisition. All those developers who bought land at higher price in the last two to three years are facing major challenge in these times. They bought assuming that the market is going well and will continue to go up. But today they are facing alot as they are not able to construct on same value as when they had bought it.
Executive director at consultancy Cushman & Wakefield says that the performance of any player depends on the cost of land acquisition. All those developers who bought land at higher price in the last two to three years are facing major challenge in these times. They bought assuming that the market is going well and will continue to go up. But today they are facing alot as they are not able to construct on same value as when they had bought it.
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