Grim prediction for real estate firms
Analysts have commented that the Real estate firms are expected to have had a lackluster in the June quarter with lesser profit due to tighter margins and higher inputs costs compared to the previous year.
Firms are expected to show downfall in their profit, including big players like DLF Ltd.
Bangalore based developers seem to have stood out with healthy sales and numerous project launches in the recent quarter, while Mumbai developers seem to have a revival in the sales, though at a slower pace.
The realty index on BSE has dropped nearly 22.37% in the past year, although property prices continue to soar higher.
DLF, the largest developer in the country, seem to be planning on divesting non-core assets but the analysts maintain that the cash from these asset sales will only resolve the problem in the short term.
The biggest challenge in near future for the developers is to launch the right product with right pricing so that it can bring buyers despite rigid competition in the market.
Analysts are hopeful regarding the performance of Bangalore developers in general, and sales bookings of players like Sobha Developers Ltd and Prestige Estates Projects Ltd are expected to be increasing due to high demand of residential market in Bangalore.
To read more real estate news:
Property prices not affected by low demand
Bangalore witnesses 46% fall in office space absorption
Source: Livemint
Bangalore, Bangalore-based developer, BSE, DLF, DLF Ltd, Mumbai, Mumbai developers, Prestige Estates Projects Ltd, Property Prices, Real estate firms, real estate firms in India, realty index on BSE, Realty News, Sobha Developers Ltd
[...] Grim prediction for real estate firms [...]