Real Estate Share Price
Posted by parthag on August 5, 2008
Indian Real Estate sector is facing a money crunch. The shares namely DLF and Unitech the two topmost players in the Real Estate sector have dropped considerably. The shares of DLF and Unitech have dropped 58% and 61% respectively with respect to the drop of 33% in Bombay Stock Exchange- Sensex.
Though the analysts are in a view that it is a good time to wrap up these stocks as they have a very bright future in one year horizon. Borrowing of money have also become very hard as the rate of interest has gone up considerably. Previously real estate developers used to get a large portion of money from the advance booking from its customers. Added to this is the rise of price of cement and steel both being the key materials for building. Interesting to note that DLF board have approved 11 billion rupee share buyback to boost investors confidence as the share price fell below its Initial Public Offer.
