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Banks shows no interest in Realty funding

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With decreasing number of realty sale and other issues of economic pressures has lain a very tough time for the most favorable business – realty. According to the source of www.propertykhazana.com all the realty groups of all shapes and sizes are in a tremendous need of liquidity to complete the ongoing sites as advance booking has declined. Earlier with the sum of the booking amounts the realtor use to complete the initial phase of the construction and then comes the turn of the Banks to finance the rest. But this strict declination has opposed all the calculations and even the Banks have kept them away from any such realty funding.
Though there are few aids from the govt. to increase the construction activities but it has not proved sufficient to raise the realty market to its expectation. Banks have now tightened their norms more on the realty segments and are asking for more collateral to issue funds for the projects which turned out to be around 150 percent as per the source of www.propertykhazana.com. The other reason of Banks deprival to the realty is the low valuation of the property prices which has come down in a very speedy pace and hard to expect the original valuation soon. The same reason was cited by the CMD of UCO Bank – SK Goyal.
Even the stock prices of the major realty groups have slashed down to around 60 percent and are expected more in future. A realty consultant states that “if it continues further then time is not far when the realty leading brands along with the other small groups have to adjust with any price tag to survive their business”. For more updates visit www.propertykhazana.com.
Source: NBTVLIVE

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