The Indian real estate sector has been suffering with a number of new reforms incorporated by the government. The changes have caused jitters to almost all the sectors, and real estate is no exception.
Although it is obvious that the organized players will be the long-term beneficiaries, it is not possible to stop people from finding faults in the reforms. Developers are finding it tough to realign their businesses to the new norms. It’s getting difficult because the new real estate development norms call for massive capital infusions.
The demonetization has left the investors in a fix. A number of developers sold their inventory in hurry so that they can cash out and leave the business. But, the current state of the market certainly presents a window of opportunity as one man’s loss is inevitably another’s potential gain.
There are many distressed properties available in the Indian real estate market after incorporation of new reforms. The opportunities galore with retail and office assets, hotels, individual residential units and even entire housing projects. But, having said that, it is important to know how to do it.
There is a significant demand for homes, offices, malls and other real estate asset class. However, in the current market conditions, one should not take a step without a clear plan of action. It is extremely important to identify the reason for why a property has become distressed. One must do a thorough check before taking the next step or finalizing the deal.
Apart from this, the physical condition of the asset plays a vital part in its essential value to the new owner. A buyer or an investor must ensure that the asset is established as per the stipulated regulations, including fire safety norms, FSI permissions, statutory approvals, etc. The buyer must also check for litigations that embrace the distressed asset.
A cautious approach while dealing with distressed property will surely reap rewards, while an ineffectively examined purchase can result in a huge financial complication.