Builders in Noida and Greater Noida are clearly reeling under financial pressure.
We have seen news of Amrapali asking for financial assistance on pretext of mission completion. We have also seen how builders like Supertech are trying to get their flats booked with offers that don’t sound reasonable.
Some of the builders that appear to be going through an unprecedented lean phase are:
As if selling vacant units in their ready to move projects at dirt cheap prices was not enough, the builder asked its buyer to offer financial assistance to help them complete projects on time. Builder has been the most forthcoming accepting financial constraints leading to delay. However, having invested heavily in advertisements, this was certainly not expected of a group of its size. The fact that none of its delivered projects in Noida have registered lease or sub lease is only adding to the fear.
After selling their assets with unbelievable offers like 1-pe-1 free and book at 2%, Supertech is clearly not having a good time. It is expected that the builder owes crores of rupees to authority and like Amrapali, has regularly defaulted on the payments. With the high exposure list, the suspense about the group’s future has only grown leaps and bounds.
Its flagship project in sector 75 was always a disappointment. Neither its sector 75’s project nor sector 46’s project have done well. Though reasonably sold out, the builder has not managed to put enough funds to either of the project. While some funds pushed to Glory (sector 46) helped push construction in few towers a bit, other towers and sector 75 project are still far from possession dream.
Logix’s foray into residential sector came in form of its Blossom country project in sector 137. That it has fooled its buyers by delaying the project by over more than 3 years already is no brainer. Even after getting OC for the project, builder allegedly doesn’t have funds to pay one time lease rent to enter into lease with authority.
Its K* projects except for one in sector 78 are all going at a pace where even a tortoise will appear swifter. Not enough funds are apparently devoted to construction activities.
Being consistently degraded by various rating agencies, Jaypee seems to be missing its association with previous governments in UP. With lack of financial support, dis-engagement with high profile contractors has been quite common leading to unbearable delay in possession of projects that shall have been delivered long back.
Its project in Greater Noida and sector 137 are perhaps the slowest of all in vicinity. No doubt the financial crunch has gotten better of the usual construction activities.
Other than these, there are more builders like 3C, Unitech, Today Homes, IITL Nimbus who seem to be under deep financial stress to meet their commitments.
Do you feel your builder is going through a tough phase as well? Please do share details if you feel so.Last updated: July 28, 2015 at 18:07 pm