According to experts, the killing in stock markets, where realty stocks have taken a beating along with the rest, may speed up the slowdown in the real estate market over the next six months.
Balaji Rao, managing director, Starwood Capital India Advisers, said, “The market is already slowing as high property prices have affected sales”.
Even as realty stocks are quoting at huge discounts to their issue prices (DLF at Rs 479.85 against Rs 525 issue price; and Omaxe, Parsvnath and Puravankara at 40-50% discounts) realty is suddenly looking scary for investors.
Many investors are thus opting to book profits by selling their flats at up to 15% lower than the builders’ rates. These are investors who don’t want their notional profits to be eroded if the rates decline.
A recent report by Credit Suisse says that though developers insist that prices have remained stable or are increasing, they are finding it difficult to raise funds from the equity and debt markets.
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7 Comments
I think it is good for investors.
as per credit suisse reports, real estate developers are insisting to reduce profit margins.finally realestate market very much trouble in future (within 1 year).mainly realestate developers created reatestate boom in india as well destroying same.
The uncertainty in the capital market has hit realty stocks the hardest.
The BSE realty index is the worst performer this year, having shed 51% of its 52-week peak reached in January.
With increasing evidence of a slowdown in the realty sector, rising input costs and little chances of interest rate softening, experts feel realty stocks may see further dip in valuations.
But at present daily the Real estate stocks is going to be on downfall stages.I have also buy the 15 shares of the Unitech which have buying cost 321.50 and present stage i have loss of 150 per share.So I think real estate sector stocks will become down more that at present in near future.
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