It's gone from bad to worse for realty stocks DLF and Unitech. While DLF shares hit a new low, correcting 15% in the past one month, Unitech plunged to a 9-year low after falling 17% in one month. Both these companies have a large presence in the National Capital Region (NCR) where the realty market is going through a very bad phase, according to several consultants.Recent brokerage reports are strongly bearish on the real estate market in India, adding that prices may correct the most in Delhi. “Inventories are at their peak and NCR will take the longest to clear,“ said a recent Ambit report. New launches too, have been slowing down across India. In NCR, new launches have dropped 80% in Jan-Mar 2015 period over last year. Both DLF and Unitech are struggling with high debt and weak cash flows. Despite owning assets and land parcels in NCR, liquidating them would be not as easy. DLF reported debt of `21,000 crore and net profit of `510 crore as on end March, while Unitech's debt and net loss were `3,800 crore and `163 crore.
If you are new in Mumbai and planning to live there for long time or life time for professional career, so may be its correct time to invest in the real estate market of Mumbai as there are many properties still in affordable price but it is expected that their price will rise soon. According to real estate developers its good to buy 1 BHK in Dombivli if you are new investor or first time buying property in Mumbai.
ReplyDelete