The Indian real estate sector has come a long way in the past few years. Listed developers’ market cap is up almost 30-fold, from US$110m in 2004 to US$30bn today. Notwithstanding this rise to eminence, primary data availability remains inadequate, despite statutory registration of every real estate transaction with government authorities. Presence of a cash component in transactions makes fair value estimations difficult. However from Investors perspective, transparency on the part of developers, timely land approvals from Government which would ensure regular flow of real-estate supply and dedicated regulator for the sector to make it more institutionalized, are all the need of the hour. However, over the next few years, we believe that the Indian real estate sector would remain in an upward transition phase on account of rising disposable incomes and more nuclear families. However, developers need to guard themselves against affordability going beyond the reach of the middle class, which represent a large percentage of population in India.
By Param Desai, Research Analyst - Real Estate & Logistics, Angel Broking
Tuesday, February 2, 2010
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment