Facing a slowdown across various segments, the Indian property market is now entering a crucial phase of consolidation. A liquidity crunch is increasingly pushing many mid-sized and smaller developers into a difficult position, prompting them to seek cover through liquidation. These developers are keen to sell off their land and incomplete projects, even if it means accepting lower valuations at present, owing to the stagnant market conditions. In recent times, around fifteen real estate deals have collapsed as investors have grown hesitant to proceed.
For instance, a mid-sized builder located in Chembur, Mumbai, has put its fourteen-floor commercial property on the market, looking to raise approximately one hundred fifty crore rupees. This capital infusion is aimed at enabling the completion of an upcoming project. Similarly, a Hyderabad-based real estate group is actively advertising to entice high net-worth investors, seeking to generate fifty crore rupees through bulk purchases of its housing project in the city.
Additionally, a small developer in Mumbai has been compelled to sell its project at Juhu-Versova, offering it at nearly a 35% discount compared to the current market price due to mounting payables for construction materials. In the capital, New Delhi, some developers are reaching out to property consultants to offload their income-generating commercial properties in order to finance unfinished projects.
Real estate funds and well-established developers acknowledge their engagement in numerous proposals, with Niranjan Hiranandani, Chairman of Hiraandani Developers, stating, “Even under normal conditions, we used to receive offers from mid-sized developers for project buyouts. However, the current numbers have escalated significantly.”