Indian Realty Stocks Hit New Lows

With the Indian Inflation sky rocketing to double digits, foreign institutional investors who were the main buyers of Real Estate Stocks in India have mercilessly dumped. The carnage has gotten worse because Domestic Institutions are in no mood to pick-up stocks of these realty companies which absolutely have no transparency in their operations. Falling Land Prices is adding to realty Company woes. A broker even went to the extent of saying Politicians have started liquidating their Land holdings ahead of the General Elections.

Almost all of the Real Estate Stocks hit a new low in todays trading though Nifty managed to hold 4,500 levels.
Most realty stocks have fallen between 77% and 51%. Ansal Infra, DLF, SOBHA Developers, UNITECH all recorded new lows. Realty companies which were listed in the past 12-24 months have fallen below their issue Price. However, the good news is India is not in any sub-prime kind of crisis, its just the Greedy Realtors who have lost sleep as they built their structures using paper-cards and not bricks ;-)

Realty Stocks in Free Fall Mode

The Indian Realty shares have witnessed a FREE FALL without any BUYING support at all. Realty major and SENSEX constituent DLF has hit an all time low of Rs 521, [even below its IPO issue price of Rs 525 Recall How DLF Cheated its Investors showing the true colors of its Management.]At 1:20PM, Ansal API and Unitech have hit a new 52 week low. Indiabulls Real Estate another purely speculative company without any fundamentals has witnessed massive selling.

Omaxe, HDIL, Parsvnath Developers, Sobha Developers and Purvankara projects have all corrected by more than 50% from their all time highs and are all quoting below their IPO Issue prices. These stocks are under performing benchmark indices as they have hit a new low already while benchmark Indices [SENSEX / NIFTY] are still above their March Lows.

Most analysts on Dalal Street attribute this massive SELL OFF in realty stocks on expectations of atleast 25% correction in selling prices of developed properties.

DLF creating new generation workspaces

DLF has announced its second IT park in Kolkata. The company is developing this state of the art, world-class facility on 25 acres of land offering 2.5 million sq.ft. of IT/ITES workspace.

DLF IT park spells success. It will present an ultramodern integrated tech city that offers a modem workspace and is fully-equipped to operate any IT/ITES major 24X7. The IT Park space is spread over an area of 25 acres and will offer developed workspace clubbed with serviced apartments, retail and recreational, all set to revolutionize IT workspace in n00ew IT corridor. Efficiently designed by the renowned architects, it is a ready-built IT workspace to offer unmatched scalable advantages.

This IT Park will involve an investment of Rs 700 crore approximately and will be developed in phases. The first phase of the said development is expected to get operational by the end of this year or early next year. It would cater to all the international and national IT/ITES companies and will be surely the first choice for IT-ITES companies in times to come.

The location advantage of DLF IT Park is not found elsewhere in Kolkata. It is located in the new IT corridor of new town, Rajarhat and in close proximity to key residential areas and salt lake. The project is just 10 minutes drive from CBD and airport.

Over the past decade DLF properties have emerged as the preferred destination for both Indian as well as multinational conglomerates apart from leading IT/ITES firms due to its cost effective office space and best in class infrastructure. DLF is also responsible for triggering the corporate shift from Delhi to Gurgaon in 1990's based on the walk to work culture. This culture implied that corporates could now co-locate their offices and residential places in order to save time in commuting.