Ajay Jain, executive director-investment banking & head, real estate group at Centrum Investment Banking, said that most of developers have to borrow project-by-project under RERA and slowdown in sales.
“Earlier, they were able to complete any project with 50 per cent from sale proceeds. Now it has come down to 20-30 per cent. RERA will make matters worse,” Jain said.
Home sales have halved in major markets, such as Gurgaon, Noida, Mumbai and Bengaluru, in January to March this calendar year from a year ago, says property data analytics firm PropEquity.
“..continued slump in sale of residential units will result in continued negative cash flows and push up the already high debt levels, resulting in the weakening of the sector’s credit profile. The implementation of RERA will further impact liquidity,” said India Ratings and Research in a recent report.
via RERA to deliver a debt blow to developers | Business Standard News
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