Delhi's real estate market faces challenges in 2012 due to competition from Gurgaon and Noida, offering better options and deals.
The real estate sector's slowdown leads to delayed home deliveries as funding dries up, demand falters, and costs soar. Several factors, including high-interest rates, restricted access to finance for smaller players, and rising construction costs, contribute to the delays.
Several small real estate firms are selling hotel projects due to a market slowdown and cash flow issues. Projects in Ahmedabad, Bangalore, Pune, Chandigarh, and NCR are on the block.
Real estate slowdown impacts hospitality projects in India, causing delays and cost revisions. Stocks have plummeted, affecting real estate majors with hospitality holdings.
Amidst a real estate slowdown, K Raheja Universal and Lupin's land deal in Boisar, Thane has collapsed due to market insecurity. Lupin denies real estate interest, focusing on its pharmaceutical business.
Leading property developers are withdrawing from hotel projects due to cash flow issues, complicating relationships with hospitality chains like Royal Orchid and Ramada.
Despite a real estate slowdown, land deals in India thrived in Q1 2008, reaching Rs 23,000 crore, with another Rs 10,000 crore in the pipeline.