4:57 AM
aditimalhotra502
Despite a sustained sluggishness in demand, property prices in Mumbai, India’s largest real estate market, do not seem to relent. Experts say a reason for this is the financing structure of real estate projects, where many developers, especially unlisted ones, resort to discounted selling to speculators during the soft launch of a project. This, experts say, helps these developers avoid the discipline of interest payments to the banks.
According to a Macquarie report, selling to speculators helps developers raise finance for construction activity against a guaranteed return to the speculator. This return then reflects in the official launch price. For example, if the assured return is 25%, the official launch price of the units would be R100 for end users against a soft launch price of R80 (for speculators who get in early). Know more about property in india.
According to a Macquarie report, selling to speculators helps developers raise finance for construction activity against a guaranteed return to the speculator. This return then reflects in the official launch price. For example, if the assured return is 25%, the official launch price of the units would be R100 for end users against a soft launch price of R80 (for speculators who get in early). Know more about property in india.
