The slowdown in the real estate market of Chandigarh has disappointed the realtors, who have bet a fortune in the sector.
Now the worried realtors are even planning to sell their land, which they had bought out of the profits they earned from the earlier projects, to fund their ongoing projects.
The multiple interest rates coupled with inflation have slowed down the residential sales around the city, worsening things for realtors who are grappling with financial crisis.
The realtors of the area are bearing the brunt of the liquidity crisis. They are not able to fund their existing projects.
With the banks getting strict over disbursing loans, the realtors are forced to look for alternatives to raise the borrowings.
The local property developers said that many realtors are planning to sell their land holdings in the peripheries of Chandigarh to solve their financial mess.
Without taking the names of the realtors, who are willing to sell their land holdings, the dealers maintain that many developers have approached them to help them in selling their properties.
“Last few months have not been good for the market. The liquidity cannot be generated through the stock markets and even the banks have got strict over loans. In order to generate liquidity many developers around Chandigarh are ready to sign off their land holdings to generate liquidity for their ongoing projects,” General Manager of Berkley Realtech Kamal Jindal said.
Explaining the cycle, Jindal said that when the real estate market was in a boom most developers with the huge profit margins created land banks around Chandigarh.
But as the real estate entered into the correction phase, liquidity became an issue for the developers who are ready to sign off their land holdings in order to clear the debts and fund their existing projects.
