Unsold flats: Will debt-ridden builders resort to firesale?

Editors note: This is a reader comment we got on the article, “ Mumbai’s unsold flats at all-time high of 1.3 lakh: All you need to know ,” published today. As is Firstpost policy, we have lightly edited for grammar and spelling, but the comment has been left as is.

By Kunal

The builders can sit on the unsold inventory only if they are not bothered about the debt which they have taken. It has been in the news that the debt of real estate companies is astronomically high. DLF has been selling land parcels to reduce its debt. With cheap money coming in from US and Japan, it might be easy for these companies to refinance the debt. Time will tell if they wait or start a firesale.