Real Estate Stocks offer BIG Prospects

August 4, 2007	(Be the first to rate this story!)  Loading ...
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Real estate stocks have shown great volatility in the market, turning more than the swing in the BSE Sensex. According to the industry connoisseurs, if investors are ready to withstand the short term jitters and the current volatility, they can cash in on handsome returns in the long run.

Realty companies with a strong presence across India are better positioned to weather cyclical nature of the industry, add experts.

The fact that investments in real estate stocks hold tremendous potential is attracting investors Also, builders are try to woo these financiers through public offers. They have mobilized a whopping Rs 17,000 crore from the domestic market, taking the sector to high in mobilizing public money. Add to that, if funds raised from international market are taken into consideration, Indian real estate can easily equal the same raised by Indian banks.

The demand for residential property in India has shot to about 3 million dwellings per year. Such a scenario clearly underlines the long term opportunities for investors, says Manish Sonthalia, VP, Equity Strategy, Motilal Oswal Securities.

Unitech and DLF Ltd., with their pan presence have emerged as the market leaders. A host of other companies such as Mumbai based HDIL, South based Purvankara Projects, Parsvnath and Sobha Developers are doing fairly well.

Real estate companies contribute to 10% of the total market capitalization and are confident about bright future of the industry.

News Published Under:   Banking and Finance |

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