The market capitalisation of indian realty stock has eroded by Rs 35,305 crore in the last 18 months. The full market capitalisation of BSE Realty index declined to Rs 75,128 crore on july 23 (2011) from Rs 1.10 lakh crore on December 31, 2010.
The CNX realty index consisting of 10 stocks has declined 39% in the last one year, barring Godrej Properties, all others have seen a price correction from 17% (Oberoi Realty) being the lowest to 85% (Orbit Corporation) being the highest .
“The indian realty sector today is last in anyone's list to invest.,” said a Bombay based leading Stock Broking company.
Mr Prakash Diwan, Head (Institutional Equities) Networth Stock Broking Said, “Those who also have some business interest in infrastructure might bounce back but pure realty players will see tough times ahead.”
Real estate players had managed to rope in investors into their new projects announecments.Major metro cites would see a 25-30 % correction in property prices.
Totally, there is unanimity on the indian realty companies would find it very difficult to raise money from the indian equity markets in the near future and coming years..
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