Instances of financial indiscipline are always noticed when real estate developers get over-ambitious and go on a land-buying spree, or take more projects than possible.
Managing Partner of Pecan Reams, Rohit Garodia believes that cash flow management plays a critical role when a crisis hits real estate.
Real estate developers encountering a cash flow management crisis is often not unheard of. A fairly common situation, it is often seen to be a fallout of expected market trends of the sale price increase and high-volume unit sales not being realised. Alarm bells are set off when developers face a situation where receipts are lesser than payments that need to be made.