New Delhi: The country's real estate industry has been in the limelight for a long time. The sector has not recovered so far due to the slump. As a result, many companies have gone bankrupt and many are stuck in court terms. Millions of houses are ready all over the country, but they are not buyers. Banks and financial institutions have stopped lending to companies. The price of assets is continuously declining.
Sensex crashes 600 points, several big stocks tumble
The new study, which has now been released by knight Frank, an industry body with FICCI and real estate sector organisation Naredco, is pointing to further worsening of the situation in the future. According to a report, the decline in demand, the increasing number of unsold houses and the NBFC problem do not seem to be a solution.
The real estate sector is also looking to get stuck in even more trouble after the automobile and FMCG sector is plunged into recession. The rising cost of projects in the sector has been described as the biggest difficulty at the moment.
Huge loss to China from US-China trade war
The closure of the financial facility by non-banking financial companies (NBFC) has been cited as the most important reason for this difficulty. Due to the non-receipt of loans from NBFCs, companies are forced to borrow expensive loans from outside. According to the report, the situation has become such that it is not easy for companies operating seriously in the sector to borrow from banks and financial institutions. Though there is gloom in all parts of the country, Northern India is the worst recession. The companies participating in the survey have expressed disappointment over most of North India's real estate market. The Amrapali episode is the latest example.
Bank Holidays 2019: Banks to be closed on these days in August