Declining Graph Of Real Estate
The graph of declining real estate has been trending for the past few years. This situation will not change suddenly. For this, we need to check the previous developments phase. 2005 allowed foreign investment in real estate. Before that, developers bought land and started building and selling flats even before construction was completed. 2005 Later foreign investment in this area was used for land purchase. Therefore, land prices increased. The developers made a lot of profit in the sale of land.
Demand of homeownership increased demand for homes, extortion of private capital. Demand of homes increased even further due to investment in the estate. This investment from developers was mostly capital-intensive. Therefore, the burden did not fall on the developers. 2011 Later land purchases were banned, banks had some restrictions on area-wise lending. After financing banks like this limit, real estate companies turned to NBFCs, non-banking finance companies and alternative funds for more credit. They gave loans at 5 to 7 % higher interest rate than banks. During this time, the developers as well as the consumers were getting loans easily and this area was not regulated. As a result, any Inexperienced entered real estate.
Black pistachio cart servlets also entered the area. Projects were designed regardless of demand or cost to customers. Therefore, the supply of houses was increased due to demand. Notarization. Implementation of RERA and GST slowed down the response to the sale of homes. Developers’ money washed away and business costs increased. From 2018, builders and developers began to pile on rays. IBC cases further hurt developers.
After the infrastructure leasing and financial services scandal came out, credit was stagnant. Labor projects also do not get loans. Then alternative lenders PE funds and banks closed their doors for developers. Customers too started to feel tired. As a result, the project remained partially under construction. The NCLT or National Company Law Tribunal has the largest number of cases with real estate companies. The lowest is the proportion of the settlement. We will now see if this situation can change in the future….