Dhoot Group talks about the comeback of Real Estate Sector in market
The investors are taking interest in real estate counter yet again as an upward trend of stocks was observed by 63 per cent while the BSE Realty index has taken a leap of 22 per cent from last three months depicting fundamental factors turning out to be in favor of industry.
Pawan Kumar Dhoot acknowledges the two data points which Pankaj Sharma, Executive Director, Equirus Securities, used to support his argument that says, “First, there has been increase in the sentiments of buyers in the past six months, leading to a lot of end-users buying across tier-I cities and that is a very good sign. Secondly, if you look at what is happening on the final affordability front, with the interest rates coming down and a 6-8 per cent kind of salary hike, real estate is becoming more and more affordable”.
A scanty surge in property prices across the metro cities in the country is observed as 2014 had witnessed rise of 7 per cent in contrast of which 3.3 per cent hike in average residential prices in Mumbai is meager, perhaps charges are expected to reach upscale of 6 per cent in 2016 hitherto still lower than 2014 statistics.
Another reason presumed behind such rise of stock price is attention of government over affordability and attempt by SEBI to allow foreign investors entry in market in regard of Real Estate Investment Trusts (REITs).
Sandip Sabharwal of asksandipsabharwal.com expresses his affirmative views for Oberoi Realty and DLF by saying, “In real estate, sectoral leader DLF is still in the value zone. It has made attempts to move up but then it has come back again. The debt reduction, the REITS story, the listing of its arm and all those stories are still intact in DLF and this stock can do well.”
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