 "KKR eyes big-ticket realty deals")
Shares of real estate companies were trading weak with nine companies from the sector hitting their respective 52-week lows on the BSE.
Housing Development & Infrastructure (HDIL), D B Realty, Kolte-Patil Developers, Ansal Properties & Infrastructure, D S Kulkarni Developers, Nitesh Estates and Peninsula Land were trading at their 52-week lows on the BSE.
At 10:34 am; the S&P BSE Realty index, the largest loser among sectoral indices, was down 1.2% as compared to 0.33% rise in the S&P BSE Sensex.
Since November 8, post demonetization, the realty index tanked 18% against 6.2% decline in the benchmark index. The stock price of Unitech, DLF and HDIL were plunged more than 25% each during the period.
Real estate demand has been lacklustre over the last 3-4 years due to several factors. Demonetisation is expected to further dampen demand and negatively impact prices in the sector, in part supported by the presence of the parallel economy.
According to rating agency CARE, the demand is expected to decline, especially in markets and segments with a higher share of cash transactions. Demonetisation will lead to lower liquidity at the hands of potential buyers, thereby negatively impacting demand.
Reduced prices, lower demand and difficulty in monetizing land may lead to cash flow mismatches for the developers, which may lead to stressed liquidity of developers and delay the ongoing projects. These problems will persist in the medium term.
In the long run, a large part of the unaccounted money which is now expected to be infused back into the formal system would lead to demand from genuine buyers or end users in the market. The increased liquidity in the banking system would lead to lower interest rates which will encourage genuine buyers to invest in property, CARE said in a report.
Meanwhile, in his monthly radio address on Sunday, Prime Minister Narendra Modi defended demonetisation, which he has billed as an attempt to fight corruption, and said the government would implement the law to clean up India's real estate records in coming days, according to Reuters report. CLICK HERE TO READ FULL REPORT
Housing Development & Infrastructure (HDIL), D B Realty, Kolte-Patil Developers, Ansal Properties & Infrastructure, D S Kulkarni Developers, Nitesh Estates and Peninsula Land were trading at their 52-week lows on the BSE.
At 10:34 am; the S&P BSE Realty index, the largest loser among sectoral indices, was down 1.2% as compared to 0.33% rise in the S&P BSE Sensex.
Since November 8, post demonetization, the realty index tanked 18% against 6.2% decline in the benchmark index. The stock price of Unitech, DLF and HDIL were plunged more than 25% each during the period.
| Company | 08/11/2016 | LTP | % chg |
| Unitech | 5.69 | 4.00 | -29.70 |
| DLF | 143.65 | 103.75 | -27.78 |
| HDIL | 74.45 | 54.00 | -27.47 |
| Godrej Properties | 358.50 | 295.50 | -17.57 |
| Indbulls Real Estate | 80.50 | 66.90 | -16.89 |
| Oberoi Realty | 338.10 | 287.90 | -14.85 |
| Sobha | 270.35 | 243.30 | -10.01 |
| Prestige Estates | 183.00 | 165.10 | -9.78 |
| Omaxe | 165.85 | 157.25 | -5.19 |
| Phoenix Mills | 363.55 | 365.05 | 0.41 |
| LTP : last traded price on BSE in Rs | |||
Real estate demand has been lacklustre over the last 3-4 years due to several factors. Demonetisation is expected to further dampen demand and negatively impact prices in the sector, in part supported by the presence of the parallel economy.
According to rating agency CARE, the demand is expected to decline, especially in markets and segments with a higher share of cash transactions. Demonetisation will lead to lower liquidity at the hands of potential buyers, thereby negatively impacting demand.
Reduced prices, lower demand and difficulty in monetizing land may lead to cash flow mismatches for the developers, which may lead to stressed liquidity of developers and delay the ongoing projects. These problems will persist in the medium term.
In the long run, a large part of the unaccounted money which is now expected to be infused back into the formal system would lead to demand from genuine buyers or end users in the market. The increased liquidity in the banking system would lead to lower interest rates which will encourage genuine buyers to invest in property, CARE said in a report.
Meanwhile, in his monthly radio address on Sunday, Prime Minister Narendra Modi defended demonetisation, which he has billed as an attempt to fight corruption, and said the government would implement the law to clean up India's real estate records in coming days, according to Reuters report. CLICK HERE TO READ FULL REPORT
| COMPANY | LATEST | 52 WK LOW | PREV LOW | PREV DATE |
| ANSAL PROPERTIES | 14.10 | 13.00 | 13.65 | 23-Nov-16 |
| D B REALTY | 35.45 | 35.15 | 35.80 | 26-Feb-16 |
| D S KULKARNI DEV | 63.00 | 54.55 | 58.20 | 26-Dec-16 |
| H D I L | 54.05 | 52.25 | 53.95 | 22-Nov-16 |
| JRI INDS. | 2.00 | 2.00 | 2.06 | 02-Dec-16 |
| KOLTE PATIL DEV. | 80.50 | 78.75 | 80.30 | 26-Dec-16 |
| NITESH ESTATES | 9.25 | 9.00 | 9.12 | 26-Dec-16 |
| PENINSULA LAND | 13.35 | 13.15 | 13.20 | 26-Dec-16 |
| VAS INFRA. | 10.45 | 10.45 | 10.90 | 25-Nov-16 |
