DLF, HDIL may report a flat growth for Q2
Indian realty market witnessed nosedive in the April-June quarter of 2012. Sales volume and absorption rates were low in the residential sector. High inventory and slow execution of projects, were the major concerns.
The commercial real estate market experienced low office space absorption and a slight drop in rentals in the metros.
Experts feel that most real estate companies would report flat to moderate growth in sales volumes for the June quarter. They expect that the industry may see only a slight reduction in debt, with most companies, including DLF and HDIL, still showing struggling liquidity levels.
While residential realty prices have remained firm, and even have risen in some areas of the Mumbai Metropolitan Region (MMR), absorption has remained low. As an outcome, Mumbai-based companies like DLF, HDIL and Oberoi Realty are likely to post submissive growth.
But when compared to other cities, the realty market of Bangalore stood even and robust. This will be reflected in the performance of south-based companies such as Sobha Developers, Prestige Estates and Puravankara Projects.
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Source: The Times of India
absorption rates, Bangalore, Commercial real estate, DLF, drop in rentals, HDIL, Indian realty market, liquidity, Metros, Mumbai Metropolitan Region (MMR), Mumbai-based companies, Oberoi Realty, Office space absorption, Prestige Estates, Puravankara Projects, Real Estate Companies, Residential Sector, sales volume, Sobha Developers
