The real estate sector in India has been experiencing a boom in the recent years. It has been made possible with large scale infrastructural development and capital flow in the country. Especially in the residential sector it has been on a roller coaster ride in the last two or three years. The sector experienced huge rise in late 2007, followed by a correction in 2008 and then recovery in 2010. The comeback ohttp://www.blogger.com/img/blank.giff growth in this sector is due to certain specific reasons, one of them being the demographics and other favorable economic conditions of the country. Whereas according to some sources the sale of projects of some real estate developers have plunged in the past few months mainly because of rise in prices which became unaffordable to majority of genuine buyers.
However this situation has occurred earlier also. During the economic meltdown period, upon RBI guidelines banks had advanced few generous debts to real estate sector redevelopment. But this was obviously on a premise that sales will surely be on track post meltdown period and developers would have enough assets to repay in 12 to 14 months period. But if the reports are believed to be true then there won’t be much surprise that the real estate developers would be requesting for delays. But this time negotiation of debts wouldn’t be that simple at all.
However this situation has occurred earlier also. During the economic meltdown period, upon RBI guidelines banks had advanced few generous debts to real estate sector redevelopment. But this was obviously on a premise that sales will surely be on track post meltdown period and developers would have enough assets to repay in 12 to 14 months period. But if the reports are believed to be true then there won’t be much surprise that the real estate developers would be requesting for delays. But this time negotiation of debts wouldn’t be that simple at all.
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