1.Today morning I read in the newspaper that developers are doing a “BARTER”with construction companies. In lieu of cash the developer is signing of inventory to the construction companies. I AM TRULY WORRIED
2. On July 19, 2019 the National Housing Bank in its circular has advised all banks not to fund developer on SUBVENTION payment plan. And there is whole lot of noise that this will increase stress in real estate further because the suspension of this payment plan will lead to further liquidity crunch IS IT TRUE?
Vendors, Channel Partners, Media all entering into BARTER with developers. Take apartments-shops-office in lieu of Material, Brokerage , Advertisement in newspaper etc. I AM MORE WORRIED ….. What is the problem in the real estate sector? why are we not able to come out of it? why so many defaults ? why so many unfinished projects ? Is it just the liquidity issue? or Is it lack of trust? or Is it the unemployment and financial issues plaguing the real estate sector Somebody has to decode the problem for sure. Be it the construction company or vendors, brokers, media finally all of them will have to SELL the inventory which they got through barter to translate into cash
If this does not happen we will see construction companies defaulting, vendors defaulting , brokers going out of business and further media get into financial mess . Are we ready for this ???
Not at all …. I am truly very thankful to all: construction companies, vendors ,,brokers , media agencies etc for providing support to the developers at this time so that the projects can be completed and blocked cash can come into the system , however let us all understand that this is not the solution The Problem today is – “” SALE “” AND Believe you me The SOLUTION is also – “”SALE “” While the government under directions of honourable Prime Minister
is supporting the real estate developers in all possible ways by virtue of rationalizing GST, supporting the NBFCs with some liquidity and also by giving incentives to the consumer in the affordable housing category the developers will have to understand the trust deficit in the mind of consumer and then bring out solutions. From my personal experience of working in real estate industry for more than 16 years and having sold more than 10,000 apartments I can confidently say that the developer needs to focus on the Marketing and Sales department – in creating a visionary leadership team – a team which will be able to understand the market, the consumer, the team member the requirement of the management and then be able to present a sales plan and also execute it. I will be very happy to take the initiative of training the sales team and also help in formulating sales strategy for any developer if you desire (write to me on: torbitconsulting19@gmail.com) This will not be a commercial initiative for ME at all Real Estate Industry helped me reach my professional and personal milestones and I feel the responsibility of giving back what I learned.
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