"These are investors who are taking an opportunistic view of the situation where prices have corrected considerably in many locations," says Sanjay Dutt, CEO business at Jones Lang LaSalle Meghraj (JLLM). He estimates that a good 40 percent of the stock sold in the last few months would have gone to investors. In Delhi-NCR, this figure might be higher at 50 percent. "Investors are back in good numbers and before the curve goes up, they want to buy. Some who have bought are already hoping to book profits during this Diwali," he adds. This could be a precursor to further improvement in investor sentiments, since investors would take this as a sign to look towards a sustainable run in the future.
Investors took flight from the residential real estate market when the market crashed last year and many have been shy of venturing back. The last few months though have seen a number of affordable launches at price points, which have stimulated the market. Most developers have launched mid come housing in the Rs 20-40 lakh range, which has created a movement. While the short-term investor is there, quite interestingly, a good number of the investors are medium to long-term investors. "These investors are flocking to real estate business because of the lack of other investment opportunities in the market at the moment," says Ajit Krishnan, partner, real estate practice at audit firm Ernst and Young who feel the trigger for these investors was the drop in price points in the residential segment in the last eight months.
Courtesy:- ET Realty dt:- 11-09-09
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