+
Taking ‘stock’ of the real estate market
Real Estate

Taking ‘stock’ of the real estate market

Steps in the right direction, but the market still remains cautious of the real estate index.

Business is booming, with many developers putting their balance sheets in order, and completions and deliveries being the order of the day. However, experts are still unwilling to declare this as an investable sector, as many policy loopholes exist. Land aggregation norms appear to be a significant hurdle, which some address through joint venture developments. The larger players are cornering a substantial share of the market. The question remains: Is Indian real estate a stable asset on Indian stock markets? E Jayashree Kurup and Pratap Padode find out.

Godrej Properties' sales bookings rose 56 per cent in the last fiscal year to an all-time high of Rs 122.32 billion, while Lodha's sales bookings increased by 34 per cent to a record Rs 120.64 billion. DLF Ltd achieved record sales bookings of Rs 150.58 billion for FY 2023. Gurgaon-based privately held realty firm M3M India reported that its sales bookings more than doubled to a record Rs 130 billion in FY23. Prestige Estates' sales bookings increased by 25 per cent year-on-year to a record Rs 129.31 billion in FY23. Despite these impressive figures, the actual results of real estate companies do not align, and here's why...

Many leading real estate players recorded pre-sales of about Rs 100 billion in 2021-2022, driven by substantial housing demand during the pandemic and beyond. Demand for luxury housing has persisted, and this demand has positively impacted balance sheets. Real estate is a business that sells today but delivers four to five years later. Construction cycles are lengthy, drivers are diverse and unpredictable, and receivables from current sales are deferred until completion when recoveries occur. Yet, realty is a well-tracked index, and investment in this index has yielded returns as well.

To read the full story, CLICK HERE.



Steps in the right direction, but the market still remains cautious of the real estate index. Business is booming, with many developers putting their balance sheets in order, and completions and deliveries being the order of the day. However, experts are still unwilling to declare this as an investable sector, as many policy loopholes exist. Land aggregation norms appear to be a significant hurdle, which some address through joint venture developments. The larger players are cornering a substantial share of the market. The question remains: Is Indian real estate a stable asset on Indian stock markets? E Jayashree Kurup and Pratap Padode find out. Godrej Properties' sales bookings rose 56 per cent in the last fiscal year to an all-time high of Rs 122.32 billion, while Lodha's sales bookings increased by 34 per cent to a record Rs 120.64 billion. DLF Ltd achieved record sales bookings of Rs 150.58 billion for FY 2023. Gurgaon-based privately held realty firm M3M India reported that its sales bookings more than doubled to a record Rs 130 billion in FY23. Prestige Estates' sales bookings increased by 25 per cent year-on-year to a record Rs 129.31 billion in FY23. Despite these impressive figures, the actual results of real estate companies do not align, and here's why... Many leading real estate players recorded pre-sales of about Rs 100 billion in 2021-2022, driven by substantial housing demand during the pandemic and beyond. Demand for luxury housing has persisted, and this demand has positively impacted balance sheets. Real estate is a business that sells today but delivers four to five years later. Construction cycles are lengthy, drivers are diverse and unpredictable, and receivables from current sales are deferred until completion when recoveries occur. Yet, realty is a well-tracked index, and investment in this index has yielded returns as well.To read the full story, CLICK HERE.

Next Story
Technology

Six ways a smarter workflow leads to faster, more accurate bids

In today’s fast-paced civil construction environment, estimators need more than just solid numbers. They need smart, streamlined processes. This article explores six key ways connected workflows can transform the estimated approach, help in minimising risk, move faster, and improve accuracy. By integrating tools, data, and teams, one can produce stronger bids with less rework, fewer surprises, and more confidence. As an estimator, the job goes beyond producing numbers. They are responsible for delivering bids that are fast, accurate, and built to win. In today’s civil construction ind..

Next Story
Real Estate

Experion Launches Women-Only Co-Living Project in Greater Noida

Experion, part of Singapore-based AT Capital Group, has launched its first co-living space under its managed rental housing brand, VLIV, in Greater Noida. The all-women residence features 730 twin-sharing beds with a strong focus on safety, comfort, and well-being. VLIV has committed a $300 million investment to create a structured, service-led rental housing ecosystem in India. The brand aims to scale up to 20,000 beds in the next few years, with a long-term target of 100,000 beds nationwide. “India’s rental housing is fragmented. VLIV is our way of building long-term, dependabl..

Next Story
Infrastructure Urban

Officine Maccaferri Acquires CPT to Bolster Tunnelling Tech

Ambienta’s platform company, Officine Maccaferri S.p.A., has acquired CPT Group, a leading Italian developer of robotic prefabrication systems and digital control technologies for mechanised tunnelling. The move positions Maccaferri as a global player in integrated tunnelling solutions, blending traditional and advanced mechanised systems. Based in Nova Milanese, CPT serves major global contractors across Europe, Southeast Asia, and Australia. The company offers robotic prefabrication (Robofactory), productivity-monitoring software for Tunnel Boring Machines (TBMs), and eco-designed spa..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?