Indian Real Estate Bulls Hiding?
Monday, March 24, 2008
Where are the Indian Real Estate Bulls hiding ? In my last post I had said, the realty stocks have shed more than 50% in the market meltdown signaling a slowdown and possibly the burst of the bubble. The chart below shows the current stock prices of Indian Realty Stocks as Traded on the NSE at 2:15 PM today.
We also present the 52 week High for the above mentioned scrips and you calculate the percentage fall yourself :-)
It is rumored that H.D.Devegowda Family and some local politicians are unwinding huge positions in Real Estate in Bangalore ahead of the state assembly elections.
We also present the 52 week High for the above mentioned scrips and you calculate the percentage fall yourself :-)- Orbit Corp - Rs 1080 in Jan-2008
- Purvankara Projects - Rs 532 in Jan 2008
- Parsvnath Developers - Rs 594 in Jan 2008
- Ansal Housing - Rs 405 in Jan 2008
- Peninsula Land - Rs 162 in Jan 2008
- Akruti Constructions - Rs 1380 in Jan 2008
- Unitech - Rs 540 in Jan 2008
- Omaxe Developers - Rs 591 in Nov 2007
- IVR Prime - Rs 500 in Dec 2007
- IndiaBulls RealEstate - Rs 840 in Jan 2008
- DLF - Rs 1200 in Jan 2008
It is rumored that H.D.Devegowda Family and some local politicians are unwinding huge positions in Real Estate in Bangalore ahead of the state assembly elections.
posted by Webmaster @ 2:14 PM
2 comments
2 Comments:
The real estate boom in India is best symbolised by the fortunes of Unitech. One of the largest real estate firms in the country, it reported net profits of Rs 452 crore during the third quarter last year, as compared to Rs 13 crore during the corresponding period in the previous year, a 3,190% jump. As one would expect, its share prices sky-rocketed. But how high was the sky? Between March 2004 and December 2006, Unitech’s market capitalisation flew from Rs 324 crore ($ 72 million) to Rs 37,784 crore ($ 8396 million) a jump of 11,561%!
In an infrastructure-poor country like India, even a little investment in developing the land fetches a disproportionately high premium in the real estate market. The RBI has thus, understandably, classified loans for SEZ investment as “real estate lending”, requiring higher rates of interest on loans for SEZs.
The real estate story may contain the secret to the wealth of Indian billionaires, and why there are more of them in India than in China, which has only recently legalised freehold private property (and whose real estate market is now seen to be saturated). Perhaps therein lies the secret key to the jackpot! Thus, understandably, India is a more popular destination for global finance capital to park and play with its funds than China.
In the years to come real estate is likely to replace IT/BPO as the lead growth story in the Indian economy. The reasons are many. First, there is a desperate shortage of housing and commercial space in India. Secondly, Indian developers and builders – the big names are DLF, Ansals, Unitech, Indiabulls, Raheja, Omaxe, Hiranandanis, to name but a few – have accumulated vast sums of capital in recent years. (Some of the richest people in the world are now Indian real estate developers.) Thirdly, overseas investors – especially financial and real estate megacorps in the US and UK – are on the lookout for quick and high returns in India and China (though most analysts expect the Indian real estate market to grow faster than the Chinese one). Fourth, thanks to a great deal of persistent poverty and huge inequalities, the Indian economy is likely to run into a domestic demand constraint in the not-so-distant future, especially as middle class demand gets saturated and consumer debts mature. As this happens, investment is likely to go even more into the financial and real estate sectors (which are fetching annual returns of 20-30% and more). Last but not least, SEZ policy has been designed to not only buffer the risks of industrial investment by allowing large fractions of land (as much as 50%) to be “fallow” for real estate development, but also with the thinly disguised aim of enabling developers to profit, even if industrial investors fail, or fail to invest.
manish i am agreeing though yur points but if you will see at present you can definately jump up the changes where yu see the upper level of the shares are not still same which have more gain at present.
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