Low-cost home projects may save the day for realty
DLF and Unitech, the two biggest real estate developers, are poised to lead the sector in reporting that profits plunged in the September quarter as sales were lower than a year ago due to high prices. But earnings may be better than the June quarter as sale of low-priced homes brought in hopes of revival, which may fizzle out if developers keep raising prices.
Many real estate firms which were teetering on the brink of collapse a few months ago, have come back to life as they used the record stock market rally last quarter to raise equity funds and cut their debt which almost ruined them during the credit crisis.
Developers such as DLF and Orbit will gain from the launch of city-centric projects at aggressive price points, said a report from brokerage Edelweiss Capital. Unitech and DLF have sold over 7 million sq ft and 4 million sq ft of space, respectively, from their new launches during the current fiscal.
More : economictimes.indiatimes.com