Tuesday, April 7, 2009

On the other hand, the builders have invested a lot of money in buying

IIPM Ranked No. 1 B-School In Global Exposre - Zee...

Demand alone is not the reason for the current situation of real estate. Liquidity crunch and undue high spending by realtors left its own impact. Fall of Lehman Brothers’ costed DLF and Unitech close to $500 million while another $500 million was lost in other projects. PE and VC investments too have fallen down considerably due to the crisis in the US. On the other hand, the builders have invested a lot of money in buying over priced land and inputs rather than taking care of the ongoing projects. The consequence – realtors overran their budgets and are left with unused land, stalled projects and skeletal buildings.


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Source :
IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and
Arindam Chaudhuri (Renowned Management Guru and Economist).


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