Real estate Market’s liking it too

The improving fundamentals of real estate developers on the back of the real estate price hikes, increased liquidity through QUIPs, real estate asset sales and pre-sales observed over the last few months is not lost on the real estate market. The BSE Realty index, the worst performer of 2008 is up 248 per cent since its March 2009 lows. This indicates that current valuations are not cheap. In a bid to cash in on the real estate recovery, leading realty companies are planning to raise money from the primary realty markets to the tune of over Rs 14,000 crore. This could also suck out liquidity and may cap appreciation of real estate prices of listed scrips, says analysts.