{"id":61642,"date":"2025-11-14T17:37:17","date_gmt":"2025-11-14T12:07:17","guid":{"rendered":"https:\/\/mint-money.in\/?p=61642"},"modified":"2025-11-14T17:37:18","modified_gmt":"2025-11-14T12:07:18","slug":"from-fundraising-to-delivery-the-cost-of-missteps-in-real-estate","status":"publish","type":"post","link":"https:\/\/mint-money.in\/index.php\/2025\/11\/14\/from-fundraising-to-delivery-the-cost-of-missteps-in-real-estate\/","title":{"rendered":"From Fundraising to Delivery: The Cost of Missteps in Real Estate"},"content":{"rendered":"\n

By Srishti Mehta, Co-Founder & Chief Advisor of Paradigm Realty<\/em><\/p>\n\n\n\n

New Delhi [India], November 14:<\/strong> In real estate, credibility is a developer\u2019s most valuable asset. It determines the fundraising accessibility, the trust of buyers and the partnership allegiance with channel partners & suppliers. Nonetheless, despite a dearth of vision often being a reason why many projects fail in India, it is rather due to the underlying failure in financial prudent strategy. Inaccuracies in fundraising and cash flow management reduce delivery speed, overestimate costs, and may cause an irreversible blow to the image of a brand.<\/p>\n\n\n\n

Cash Flow Mismanagement<\/strong><\/p>\n\n\n\n

Financial discipline is very important even after money has been raised. A good sales figure has been known to be an indicator of a healthy project; however, sales do not necessarily make the project run smoothly. Without careful alignment of working capital and outflow timelines, projects face liquidity crunches. This is one of the key causes that more than half a million houses in India are yet to be delivered, and close to one-fifth of under-construction work is being postponed as a result of financial mismanagement or mismatches in cash flow. Even with strong sales pipelines, failure to handle day-to-day liquidity may lead developers into expensive delays, litigation or incomplete projects.<\/p>\n\n\n\n

Inadequate Feasibility Studies<\/strong><\/p>\n\n\n\n

One more pitfall is the neglect of feasibility studies. Sometimes, developers who are keen on acquiring land parcels or declaring new projects fail to consider the thorough process of demand evaluation or disregard regulatory bottlenecks. Approval periods are, however, increasing, and land-use and building approvals in large metros are frequently taking 10-14 months. This lag has a direct effect on project launches and presales, where the top 7 Indian cities have seen a decline in sales in Q2 2025 despite high demand signs.<\/p>\n\n\n\n

When Markets and Rules Bite<\/strong><\/p>\n\n\n\n

The real estate industry in India is still facing external shocks and regulatory non-conformity that has been pushing the industry to its limits. By Q2 2025, the Mumbai Metropolitan Region experienced stiffer tumbling than other top cities and saw a 25% drop in sales. <\/p>\n\n\n\n

In the meantime, non-compliance is not free: MahaRERA revoked over 4,800 projects in Maharashtra, 2,600 projects lapsed in Karnataka, and Telangana imposed interest-related refunds, which acts as a strong reminder that compliance is not only a credibility matter but also a financial discipline matter. Of 7,707 registered projects, 2,632 builders also failed to keep their commitment, with late possession being the most popular. Although rules allow developers to apply for extensions, many fail to do so in time, further eroding buyer trust and investor confidence.<\/p>\n\n\n\n

Building Financial Discipline for Long-Term Trust<\/strong><\/p>\n\n\n\n

The developers should go the extra mile of incorporating financial prudence throughout a project. A conservative forecast, strong feasibility studies and strict cash flow management is no longer a choice it is a necessity. Funds must be deployed as intended, as diversions weaken investor trust. Positively, the practice has witnessed a shorter average delivery time of huge projects, to 4.9 years as compared to 6.1 years in the last ten years. Going forward, developers will be judged not only on the scale of projects they launch, but also on the steadiness with which they manage them. Those who master it will not just deliver projects; they will build enduring brands in an industry where trust is the rarest and most valuable commodity.<\/p>\n\n\n\n

Attached are the input and the image as provided by Srishti Mehta, Co-Founder & Chief Advisor of Paradigm Realty<\/p>\n","protected":false},"excerpt":{"rendered":"

By Srishti Mehta, Co-Founder & Chief Advisor of Paradigm Realty New Delhi [India], November 14: In real estate, credibility is a developer\u2019s most valuable asset. […]<\/p>\n","protected":false},"author":1,"featured_media":61643,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[320],"class_list":["post-61642","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-real-estate"],"_links":{"self":[{"href":"https:\/\/mint-money.in\/index.php\/wp-json\/wp\/v2\/posts\/61642","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mint-money.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mint-money.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mint-money.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mint-money.in\/index.php\/wp-json\/wp\/v2\/comments?post=61642"}],"version-history":[{"count":1,"href":"https:\/\/mint-money.in\/index.php\/wp-json\/wp\/v2\/posts\/61642\/revisions"}],"predecessor-version":[{"id":61644,"href":"https:\/\/mint-money.in\/index.php\/wp-json\/wp\/v2\/posts\/61642\/revisions\/61644"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mint-money.in\/index.php\/wp-json\/wp\/v2\/media\/61643"}],"wp:attachment":[{"href":"https:\/\/mint-money.in\/index.php\/wp-json\/wp\/v2\/media?parent=61642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mint-money.in\/index.php\/wp-json\/wp\/v2\/categories?post=61642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mint-money.in\/index.php\/wp-json\/wp\/v2\/tags?post=61642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}