Indian developers facing mountain of debt

Developers in India are facing mounting debt as borrowing costs fly past 20%, eating into profits.

The property industry in India needs to repay 1.8 trillion rupees in the next two to three years according to broker Knight Frank.

And Bhaskar Chakraborty, analyst for brokerage IIFL, believes that debts will continue to spiral and put house builders under pressure. "The next financial year is going to be worse than this one, seeing the state of the industry with dwindling sales and high interest costs." Chakraborty told Bloomberg.

Yesterday, Matthew Montagu-Pollock of Global Property Guide told OPP that he expects India's property boom to come to a "juddering halt" next year.

Source: OPP.org.uk