Tuesday, August 5, 2008

We are headed for a distressed real estate market

"V Hari Krishna, chief investment officer, Kotak Realty Funds Group, has reason to say so.

Actual home buyers have all but withdrawn from the property market because of unaffordable property prices. Add a slack in the employment growth of technology companies, fall in home loan disbursement by about 22 per cent on a year-on-year basis from 2006-07 to 2007-08, hardening interest rates on the back of spiraling crude prices, the reluctance of real estate developers to reduce property prices and you have a problem on your hand.

As if on cue, stock prices of real estate developers like DLF, Unitech, Omaxe, Parsvnath and many others have been pummeled by the market since January this year as it is believed that the sector is facing a downturn.

In an interview with Prasanna D Zore, V Hari Krishna discussed the real estate sector in India, how it will be impacted if interest rates increase from here, and when his realty fund will start investing in the property market here." To read more, please, visit:
Rediff.Com

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