Prevailing Trends in Indian Real Estate

Real Estate

In coming years, India and China are expected to outperform the global markets with a growth rate in the range of 7-10%. This will benefit all sectors, particularly the real estate, which is closely linked to high growth in the economy.

It is not only the listed players but also the unlisted players that have realized that affordable housing is the way to grow. Listed players who have committed huge investments towards low-cost housing projects are Unitech, Puravankara, DLF and Omaxe. Amongst the unlisted ones, Tata Housing is championing the cause of housing of the lower middle class. Following closely are Raheja of Delhi; Mumbai-based Matheran Realty, Lodha Group and others

The combined effect of increasing sales and restructuring a major portion of debt has improve the liquidity position of most of the developers. An equally important timing of the upturn in the equity market opened another option of fund raising for these cash-starved companies. Realty stocks had corrected 80-90% over January ’08 – March ’09, but rebound back significantly. A number of builders including the likes of Unitech, Indiabulls Real Estate, HDIL., Orbit, DLF and Puravankara took advantage of this and either announced or raised foreign money in the past two-there months. This funding has come at the right time as it boosts the retail investors’ confidence in the sector

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