Cash crunch in realty puts brakes on land deals
Cash crunch triggered by Non-Banking Finance Companies (NBFCs) crisis has brought land deals in and around Ahmedabad to a grinding halt. Hardly any big-ticket land deals has been struck in the past three months. What's more, a number of deals struck before Diwali last year are either stuck or shelved owing to liquidity problems faced by real estate developers. A realtor recently pulled out of the negotiation to purchase 13,000 square yard plot in Thaltej area citing liquidity issues. This land parcel's market value is approximately Rs 160 crore. One more transaction pegged at Rs 350 crore for a 28,000-square yard party plot on SG Road could not materialise due to similar reasons.
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