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Cash crunch in realty puts brakes on land deals

AHMEDABAD: Cash crunch brought about by way of Non-Banking Finance Companies (NBFCs) disaster has brought land deals in and around Ahmedabad to a grinding halt. Hardly any big-ticket land deals has been struck previously 3 months. What's more, quite a few deals struck earlier than Diwali final year are both stuck or shelved owing to liquidity issues faced by way of real property developers.

A realtor not too long ago pulled out of the negotiation to buy 13,000 square yard plot in Thaltej house mentioning liquidity issues. This land parcel's marketplace worth is approximately Rs 160 crore. One more transaction pegged at Rs 350 crore for a 28,000-square yard birthday party plot on SG Road may just not materialise due to similar reasons. Another deal valued at Rs 115 crore for 11,500 square yard plot near Vaishnodevi circle may be pending completion.

"There are no major land deals happening due to lack of money and opportunity in the market," mentioned Balbirsingh Khalsa of Knight Frank India, a real property consultancy firm. Among the land deals carried out earlier than November 2018 have additionally been known as off, while others are nonetheless pending finalisation. About 20 land deals worth hundreds of crores have been carried out in Ahmedabad earlier than Diwali.

Ahmedabad real property marketplace is dependent closely on NBFC's for finance. Gujarat, in particular Ahmedabad has noticed a leap an annual leap of 50% in budget availed from NBFC's in final 3 year.

"However, several NBFCs have stopped financing now," mentioned a realtor.

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