Top real estate developers may find it tough to reduce debt significantly this year as sales forecasts remain dismal, leading to concerns that weak cash flows may, in fact, cause more debt to pile up on their books.
Higher bookings and operational cash flows will be key to maintaining debt at a manageable level in 2014 for most real estate companies, which in 2013 focused on reducing debt by selling assets and other strategies, analysts say.
A slump in economic growth to 4.5% in the last fiscal year, the slowest pace in a decade, and high borrowing costs have hurt consumer sentiment and dented sales of residential and other real estate. Economic growth is forecast to stay below 5% for the second year in a row in the year to 31 March. Read more