2. Is the real estate sector experiencing a funding problem

The real estate sector in India has been experiencing great heights in the few recent years with many ups and downs, however there are currently many reports suggesting that the sales have been tumbled in last few months. This drop ihttp://www.blogger.com/img/blank.gifn sales can be attributed to the rise in prices making the residential homes unaffordable for the majority of buyers. During the economic meltdown following the RBI guidelines many banks had advanced loans to the real estate developers which is now suspected to be delayed while repayment. But the negotiation among them for this delay isn’t going to be simple this time. The recent scams in the real estate sectors have made the authorities and investors more aware and cautious while finalizing any deal thus delaying some other projects.

Among other source of financial help to the real estate developers is the Real Estate Private Equity Funds (PE), several of whom were expecting great deals in past few years but this source has been drying up. The interest of overseas limited partners in the PE has also been decreasing gradually adding to the trouble. Considering this situation the real estate sector must think out of the box to fulfill its financial requirements which are obviously not meted by the current funders. But there still exists some measures through which the current situation can be controlled by the developers, the major being improvement in pricing disciplines, transparent policies and framework and better governance.