How India's Real Estate Developers Work: Checkpoint 1

Quick checkpoint - five questions on the business model, land, approvals, pre-sales and finance.

Question 1 of 5 Why is real estate development risky?

Big upfront costs and multi-year projects It needs no money Buyers pay only at the end Prices never change

Delays and price falls add risk.

Question 2 of 5 What is often the largest cost in a city project?

Land Paint Lifts Marketing

High land costs hurt affordable housing.

Question 3 of 5 What do approval delays add?

Interest and transaction costs Free land Lower prices Nothing

Single-window systems aim to help.

Question 4 of 5 Under RERA, how much of buyers' money must go into a project account?

70% 10% 25% 100%

This stops diversion of funds.

Question 5 of 5 What did the 2018 IL&FS default cause?

A credit crunch for developers A housing boom Lower rates More NBFC lending

SWAMIH was set up in 2019 to help.

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