Current reports show that real estate shares are under heavy pressure of selling. Last Tuesday BSE real estate index was closed at 1,822.14 falling down by 3 %.
Real estate shares fall deeper due to higher interest rates and sluggish real estate market.
Real estate shares are under heavy pressure to sell off mainly because of profit-booking. Real estate investors’ sentiment was all the more hurt by the 7.8 % inflation of September. This was the highest in all the ten months of the year.
The 3% of fall of real estate shares was the highest among all the sectors. The shares of all real estate majors also affected heavily. DLF shares were sold at Rs.208 with a decline of 4.3%. Another real estate major Unitech fell to Rs.25.65 after facing a decline of 4.8 %.
The biggest real estate loser was Anant Raj Industries which dropped by 6.8%. HDIL had the second worst position as it had a drop by 5.7%. Continue reading
After a year, the realty market seems to be overwhelmed with the comeback of the demand of luxury homes. Apart from the prime locations like Bangalore and Mumbai, the tier-II or tier-III cities, such as Nagpur and Ahmadabad are also witnessing remarkable growth as far as luxury homes are concerned. Within just six months, these cities have seen a rise of about 20-25% in account of premium residential projects.
Some of the developers who have floated several luxurious schemes across the country in order to grab more and more investors and end-users are Hiranandanis, Sobha, DB Realty, Lodhas , Indiabulls and Prestige.
However, each city has its own range of prices of these luxury homes. The cities Bangalore and Hyderabad have a pricing of Rs 6,000 per sq ft while the pricing in Mumbai is Rs 30,000 per sq ft.
“From Jones Lang LaSalle Meghraj (JLLM) which is a real-estate consultant, the managing director, strategic consulting, Mr. Deepak Bhavsar said that there has been an increase of 10-12% projects in Delhi NCR and Mumbai.