Click to play videoNew Delhi: Real estate companies continue to hog the limelight, but for all the wrong reasons. The global credit crunch has taken the sheen off large property firms. The market cap of India's top realtors, Unitech, has eroded 94 per cent in the past few months, making it issue assurances about its housing projects.
“All our residential projects are totally funded and we typically get financial closures by project and we don't makes accounts or projects with the corporate. So, all are projects would be time and are making steady progress actually. We still have about 25,000 workers working across various construction sights of far as of today also,” says one such assurance from the real estate giant.
Experts feel that announced several projects may never take off. Developers may go in for restructuring and focus on selective projects in the short-to-medium term. The credit squeeze is also likely to hit the smaller companies harder.
“The truth is that small and medium builders may face problems because of liquidity and credit problem in the system, they may not start new projects, they may not be able to compelete the projects, but don't panic'' says MD, CB Richard Ellis, Angshuman Magazine.
For realty players, it is certainly testing times ahead, and it remains to be seen how well the big as well as small and medium players survive the downturn.
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