Sarcouncil Journal of Entrepreneurship and Business Management

Abstract: This study explores debt-free property development as an emerging model for achieving financial sustainability in the real estate sector. Using a mixed-method approach, the research combines quantitative analysis of financial indicators with qualitative insights from developers and financial experts. Data were collected from 50 property development firms and 30 financial consultants through structured questionnaires, interviews, and secondary financial reports. The results reveal that debt-free developers exhibit significantly higher Return on Investment (ROI), stronger liquidity, and greater financial stability compared to debt-based counterparts. Regression analysis confirms that equity ratio, ROI, and liquidity are strong positive predictors of the Financial Sustainability Index (FSI), whereas debt-to-equity ratio and project completion time negatively influence sustainability outcomes. Cluster analysis and thematic findings further highlight that debt-free models foster financial discipline, minimize risk exposure, and enhance investor confidence, although scalability remains a constraint for large projects. The study concludes that adopting debt-free or low-debt strategies can serve as a sustainable and resilient financial framework for the real estate industry, ensuring long-term profitability and ethical growth.