Not Being In Growing Real Estate Business Segments Is A “Threat” For Parsvnath Developers Ltd
New Delhi: Realty firm Parsvnath Developers Ltd considers it as a “threat” for itself that while the real estate industry is moving towards new segments like senior living, student living, co-living and co-working, it cannot enter these businesses due to lack of funds.
Under the head ‘Threat’ in a SWOT (Strength, Weaknesses, Opportunities and Threat) analysis for itself, it says in its annual report for 208-19 that, “Market is moving to newer segments such as co-working, co-living, student living, senior living, etc. and the Company in unable to put up funds for participating in these opportunities.”
Co-living, co-working, senior living etc have emerged as promising segments of the real estate industry with lot of potential in the coming years.
The market size for co-living industry in the country India is likely to touch Rs 99,700 crore mark by 2023 growing at an annual rate of 16 percent, according to a recent report by NAREDCO and KPMG.
Even co-working industry has taken major strides and in 2020, about 16 million seats and around 9 million sq ft are likely to be made available by the operators.
Parsvnath has been struggling with severe financial crunch has several of its projects are running behind schedule. Many of its buyers have taken the firm to court for delay in completion of the projects and other such issues. It has suffered net loss in four of the last five fiscal. The net loss for 2018-19 was Rs 243 crore.
Litigation on its projects is another threat that it has identified for itself. Other listed by the company of itself are delay in sanction of projects, the liquidity issues arising out of the NBFC crisis and slowdown in the real estate as a whole.