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Real estate builders in India are facing troubles in finding investment

1 Comment Sub Category:Cities,Other cities,Real estate trends,Realty News Posted On: Jun 07, 2012

real estate in IndiaThe real estate sector of India is going through a tough phase. Sales of residential projects in India have declined in last one year. Along with it the government has been strict with regulations and granting clearances.

The developers are also finding it difficult to get investments for their projects in India.

The builders are reporting a reduction of profit amount in the last financial year. And higher interest costs and margin compression have been cited as the reason for the dipping profit.

Many big realty players like DLF, Parsvanath Developers, Omaxe and HDI have posted a loss in their business operation. All of them are stating that the increasing cost of material, funding and then the unavailability of funds for real estate sector are the major concern for them.

The glum economic scenario, along with the rupee devaluation has put a strain on builders.

Adding to that the market regulator Securities and Exchange Board of India (Sebi) has issued a notification that makes Rs1 crore the minimum limit for alternative investments, including realty funds, up from Rs5 lakh earlier.

Sebi’s move made it difficult for builders to find investors, as many of them would not like to invest the higher amount of Rs 1 crore in real estate when the situation is tough.

To read more real estate stories:

Rising property prices have reduced the demand

Source: Businessreviewindia

One Response to “Real estate builders in India are facing troubles in finding investment”

  1. Delhi Properties says:

    Developers selling properties in prime areas are seeing sales, especially in completed projects. The sales are not happening in the outskirts and unfinished products.

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