Real Estate (Infiltration of deferred payment schemes): IIFL

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Real Estate (Infiltration of deferred payment schemes): 


With sharp increase in prices and long lead time to delivery resulting in drop in primary residential transactions in Mumbai,  deferred payment schemes that were initially launched primarily across luxury projects in Central Mumbai are now being offered for projects in the Western and Central suburbs. However, our past experience with such schemes suggests that these schemes tend to stoke demand from investors rather than from end-users. As such, we doubt RBI will be well disposed towards these schemes. We also see the power equation changing from being a sellers market to one where the buyer is increasingly having their say. We like Oberoi Realty, Sobha Developers and Godrej Properties after the sharp correction.