With decent shelter and space commanding a handsome premium across the country, the Indian real estate enjoys a unique place of pride and prominence among investors. Over the years, this sector has witnessed a sea change in volumes and value. From a pure stock market perspective, the figures are nothing short of spectacular – Listed real estate companies have seen a 30-fold increase in market capitalization - from a meager US$ 110 million in 2004 to US$ 30 billion till date.
Despite the meteoric rise and media attention, the sector remains fragmented and hence elusive for investment. Prima facie, every single real estate transaction requires statutory registration but this regulation is of little help when it comes to the availability of primary data. Further, the transactions are invariably highly cash-centric thereby posing problems in making fair value estimations.
|Fall in per cent from peak||Key trigger|
|Bangalore 38%||Economic uncertainty led by IT job losses|
|NCR 36 %||Investor exodus following the 2008 price slump (Commanded 40 per cent of total demand)|