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Gurgaon too has its Share of Problems
Real estate sector works phenomenally to grow the economy and also allows many players of industry to enter the sector. Gurgaon is an industrial city and also considered as one of the growth progress in real estate sector. But now-a-days real estate sector in Gurgaon city has going to the unceasing contraction. Demand of commercial property is facing some deluging effect due to the increase of the Indian economy. Downfall in the real estate sector has spot fall in stock markets which also leads lack of capital to invest for investors. This situation leads investors to sell their properties and share losses.

Due to the economic slowdown, the city has experienced that many small real estate companies have lost their identity in the sector. Many small property developers in the city advertise properties at very low rates which are not trustworthy. Rates of the property vary according to the location as central based property with luxurious set-up will be expensive as compare to the property available far-flung area. This factor encourages the investors to invest only on infrastructure where the location is civic and approachable. Increase in interest rates leads to higher costs. This also causes slowdown in the growth of real estate sector and developers have to face liquidity crunch in their ongoing projects. Developers have to slowdown their projects or at worst situation have to stop the ongoing projects.

Real estate projects are completed in very long time. This delay has become one of the common problems especially in the Gurgaon. Sometimes developers acquire land to launch a new project and promised to deliver it in around 42 months. But the promised was not followed and creates cash flow emergency for the builders. Increasing cost of steel, cement and other building materials also become unenviable for builders to build the properties at acceptable rates. Loan rates have increased which made impossible for normal people to buy a house. According to many researchers declining demand and growing liquidity have left some negative impact on the real estate sector.

It has also been seen that the small developers indulge in project development are exposed to liquidity pressures which make the property sales slow. Due to the liquidity pressures developers have to decrease the rates of the property to boost the demand. In this current negative situation it has been noticed that high projects are still on the wait to get sold.

Source :www.gurgaonproperties.net

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