High Unsold Inventory, Piling Debt – Time to Act
Real estate powers India’s economy—second only to agriculture in jobs, fueling cement, steel, furniture, AAC blocks, sanitaryware, and more. Yet builders get little govt. support. Really want real estate to grow..
Reputed builders I have known for decades are hurting: Unsold stock exceeds loans, but slow sales kill cash flow.
From my limited experience as project finance consultants, below are few humble suggestions:
– Cash Flow First: Renegotiate lenders—extend loan tenures, reduce rates of interest, secure moratoriums. Proactively speaking to bankers/customers wins support; hiding never. Most of the lenders support during tough times.
– Ignite Sales (most important): Blast Google Ads, digital campaigns, virtual tours, influencer collabs.
– Smart Liquidation: 10-15% discounts or zero-cost EMI on prime units (sub vention); broker partnerships for fast flips. (Delays = interest bleed.)
– Diversify Income: Short-term rentals via brokers or serviced apartments (target 2-3% residential, 6-8% commercial yields).
– Slash Costs: Cut employee expenses, defer capex, trim overheads.
– Strategic Allies: Builders in metros can pitch REITs, PE funds, fractional platforms for offloads or rentals.
Act now, communicate openly with buyers/bankers – I had seen it helps big times.
pls share your slowdown strategies for larger benefits.