
DLF shares fall 6% on ‘sell’ report
Shares of DLF, the largest real estate company, fell 6 per cent on Thursday, march 1, as Veritas, a Canadian investment research company, advised its clients to sell the company’s shares.
Shares of DLF, the largest real estate company, fell 6 per cent on Thursday, march 1, as Veritas, a Canadian investment research company, advised its clients to sell the company’s shares.
During the year 2011 when almost all other matured property market witnessed dip in transaction and price correction was on everyone’s lip, Bangalore registered both healthy transaction as well as upward price movement.
After a sharp recovery in the first one-and-a-half months of the calendar year — the Bombay Stock Exchange (BSE) Realty Index gained over 50 per cent, real estate stocks seem to have lost steam.
The world’s housing downturn is gathering momentum, according to the latest world-wide survey of house price indices prepared by the Global Property Guide.
DLF, India’s largest real estate firm by market cap, reported a profit after tax of Rs 258 crore in the October-December quarter of FY12, a massive fall of 30.65% as compared to Rs 372 crore in the previous quarter.
When the Reserve bank of India was announcing the CRR rate cut by 50 base points, the house wife Sugnadha Dubey, glued to TV news channels, couldn’t resist the temptation to call up her husband to know whether the EMI burden on this middle class home owner is going to ease out from next month. With no background of the world of financial jargon, her husband could only assure her with a wishful thinking.
High property prices coupled with continued increase in home loan interest rates over the last six months and inflationary pressures will keep transaction activities restrained.
Mumbai’s residential home sales dropped to a three-year low in the quarter ended December as record home prices and higher interest rates crimped demand, according to Liases Foras Real Estate Rating & Research Pvt.
The real estate sector has welcomed the CRR rate cut by the RBI and said it will help revive demand in the housing segment.
Judging by feedback obtained from a cross-section of Indian retail players, it emerges that most retailers perceived 2011 to be a flat year.