Godrej properties will take over under-construction properties in National Capital region, where developers are short of fund and are unable to sell. This would be done as a joint venture where Godrej will endorse the construction and sell the product.
It is not only Godrej, but other companies like Bharti Realty run by Sunil Mittal have been approached by developers as well. This new trend of taking up an under-construction project and developing and selling it is yet to catch up.
The companies mentioned above will necessarily look for clean projects with licenses and approvals in place. Joint development is preferred than an outright purchase of land by these realty arms of big groups, where in acts as a service provider as well.
Research data showed 335.2 million square feet of which unsold was at 321.7 million square feet resulting in liquidity crunch and slowdown.
Inventory in months denotes the time required to clear the stock at the existing absorption pace. A healthy market maintains an inventory of eight to 12 months but there have been delays ranging from three to five years across many projects.
Source : Business Standard