New Delhi, February 01, 2019: “The real estate sector, between demonetization and GST (on only under construction apartments) has faced a severe cash crunch because buyers have moved towards wanting to purchase only post-completion ready to move in flats. As such, government should consider short term measures to ease liquidity and allow banks and NBFCs to help developers tide over their liquidity requirements to ensure asset completion. It is important to note that not all situations require the heavy hand of the law, which often causes more value destruction than creation, but only suitable restructuring from all stakeholders so as to ensure that business continue to occur smoothly. In the long term, the entire model will need to become more equity-heavy and debt-light in order to sustainably complete projects before sales occur.”
Corporate Comm India(CCI Newswire)
