Unitech's Debt rating has been downgraded from A+ to A- by rating agency Fitch. Unitech is all set to offload its Delhi office of over 200,000 sft located near Sheraton Hotel at Saket, Delhi. According to reports, Unitech is expected to sell the building between Rs 20,000 to Rs 25,000 / sft to HDFC as the former owes to HDFC in the form of loans.
Arrogant Indian Builders thought that the prices will only rise and are now caught on the wrong foot. They are facing severe cash crunch due to substantial drop in sales. Bankers have turned cautions and stopped lending as Realtors are unwilling to lower the value of their land bank which they deposit as co-lateral guarantee in case of defaults.
Property Prices in Saket, Delhi are expected to be down between 20-30% from the peak in Jan-2008.
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