Tight fund flows are forcing real estate companies to slow down construction in key projects with developers in Mumbai now struggling to maintain their construction schedules. However, this could end up hurting their cash flows even more, as CNBC-TV18's Priyanka Ghosh reports.
The Mumbai real estate sector is standing on a soft patch. While rising interest rates is turning away potential customers. even funding from existing customers is falling.
Here's what is happening. Caught in a cash crunch, developers are being forced to slowdown construction of projects. This in turn means construction linked funding from buyers is also drying up landing developers in a vicious circle.
Case in point here is HDIL. Although the company has declined to comment, an IIFL Research points out that HDIL
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