India’s realty industry is back on track

Oct 5th 2009
Tags: Bazaar Talk, Bazar Survey

India’s realty industry is back on track

India’s realty sector has raised about Rs.75000 crore ($15 billion) through routes like QIP in the past six months, after losing almost 75 percent of its stock valuation last year (last 18 months). Almost every company in the realty sector is taking the QIP route to raise funds, as the sales are improving and market sentiments are bullish so the prospects of fund raising is brighter at the moment.

Among the developers who have started mopping up funds over the past few months are the largest player in the industry, DLF Ltd, with $780 million, Unitech with $325 million and Indiabulls Real Estate with $550 million.

On the back of success of such companies and also sensing the return of buyers in the market after a year and half long lull, 12 more realty firms have planned to enter the primary market over the next two-three months. Some of the early comers are Emaar MGF, Lodha Developers, Sahara Prime City and Ambience, and together they expected to raise around $4-5 billion from the primary market. Some others are Godrej Properties, BPTP, Oberoi Constructions and Nitesh Estates.

The realty industry is expecting good sales this Diwali, last year Diwali was not so good and was really very painful. So HAPPY DIWALI this time.