Bears turn their focus to real estate

Ashok Ambade, a property broker in Thane near Mumbai, says he has seen a 10-20% drop in buying enquiries in the last six months. “There are very few buyers now,” Ambade, who has been in the business for 20 years now, adds. Vineet Matlani, another broker, pegs the decline in enquiries at an even higher 30-35%. The luxury segment where apartments are priced over Rs 5 crore have been impacted the most, he says, adding that developers are slowly coming out with offers such as 30:70 or 20:80 and so on to make sure that the phone calls don’t stop after the initial enquiries.

Most agree. Home sales were driven by the demand to upgrade, which, in turn, was partly driven by the wealth effect created by the stock market. But the markets have been declining, with the Sensex losing 14% since its peak in September last year. HSBC Securities said in a report last month that while the National Capital Region (NCR) continues to do better than the others, Hyderabad’s deterioration is evident with the drop in the number of units and value sold, and four consecutive quarters of declining project launches.

ALSO READJefferies initiates coverage on Waaree Energies, Patanjali Food and Sai Life Sciences

Even Bengaluru is slowing, with two-quarters of decline in units sold despite launch growth. The average apartment size is peaking in some cities. Real estate researchers such as Pankaj Kapoor, managing director at Liases Foras, a real estate ratings and research firm, agree with local brokers. “After 15-16 quarters, we saw a 1.5% decline last quarter (Q3FY25) in sales on a sequential basis,” Kapoor said, adding that the sales would plateau or decline in the coming months. Earlier, people were booking profits in stock markets and investing in properties which is not the trend now, he said, adding that the sharp run-up in prices has also impacted the property market.

However, Kapoor said the mid-income segment (priced between `75 lakh and `2.5 crore)is growing slowly. “There may be better growth in this segment as the government has given concessions on income tax for people earning up to `12 lakh,” he said.Anuranjan Mohnot , MD and CEO at Lumos Alternate Investment Advisors, said that stock market investors are holding back their property purchases in cities such as Ahmedabad due to losses in the stock market.

 » Read More

Related Articles

Stock Market Live Updates: Nifty, Sensex set to open higher; Asian markets trade in green

Go to Live UpdatesSensex Nifty Today | Stock Market Live Updates: Indian markets are set to open on a positive note today, taking cues from early trends in GIFT Nifty. Asian stocks also kicked off the day in the green, reflecting optimism from Wall Street’s overnight rally. Major indices across Japan, South Korea, and Australia

How will markets open today? Fed meeting, soaring gold rate and 6 more cues to watch

Markets are gearing up for a positive start today, with early signals from Gift Nifty pointing upwards. Global factors, including Wall Street trends and key economic updates, will set the tone for the day. On March 17, Indian stock markets ended on a strong note, with the Sensex rising 0.46% to 74,169.95 and the Nifty

Stocks To Watch: From Tata Motors to IREDA- Here’s a list of 10 stocks in news today

Every day, there is a lot happening in the world of business such as companies announcing big moves, stocks reacting to market trends, and new policies shaping industries. With so much information coming in, it’s easy to lose track of what really matters. To cut through the noise, here are the top stocks in focus

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

Stock Market Live Updates: Nifty, Sensex set to open higher; Asian markets trade in green

Go to Live UpdatesSensex Nifty Today | Stock Market Live Updates: Indian markets are set to open on a positive note today, taking cues from early trends in GIFT Nifty. Asian stocks also kicked off the day in the green, reflecting optimism from Wall Street’s overnight rally. Major indices across Japan, South Korea, and Australia

How will markets open today? Fed meeting, soaring gold rate and 6 more cues to watch

Markets are gearing up for a positive start today, with early signals from Gift Nifty pointing upwards. Global factors, including Wall Street trends and key economic updates, will set the tone for the day. On March 17, Indian stock markets ended on a strong note, with the Sensex rising 0.46% to 74,169.95 and the Nifty

Stocks To Watch: From Tata Motors to IREDA- Here’s a list of 10 stocks in news today

Every day, there is a lot happening in the world of business such as companies announcing big moves, stocks reacting to market trends, and new policies shaping industries. With so much information coming in, it’s easy to lose track of what really matters. To cut through the noise, here are the top stocks in focus

Physics Wallah confidentially files for $500-mn IPO

Edtech giant Physics Wallah has confidentially filed for an initial public offering (IPO) that could raise as much as $500 million, according to a report by IFR. The company in October 2024 said it might launch a $400-500-million IPO in 2025. If the public issue is launched, Physics Wallah will be the first pure-play edtech

FY25 advance taxes grow 14.6%; Q4 rise at just 2.4% 

Advance tax collections from the corporate sector, other firms and individuals in the current fiscal stood at Rs 10.45 lakh crore as on Sunday, up 14.6% on year. In the corresponding period of last fiscal, these collections — a proxy of corporate profitability and the state of the economy — stood at Rs 9.11 lakh