BSE Realty Index at all-time highs
Real estate stocks followed the BSE Sensex 30 index to all-time highs yesterday; the BSE Realty Index hit almost 8500. Since a 20%+ drop last month, the index has put in a sharp (’V') recovery.
There has been talk of lending rates coming down soon, but I’m not sure if residential real estate prices in cities are keeping pace with this rise in the sector index. Anecdotal evidence in Bangalore suggests continued weakness locally (eg. a recent ad for an apartment in the Springfields complex at the ORR/Sarjapur Road junction offers a rate of 2800 per sq ft - versus 3700 per sq ft quoted to me earlier this year by an owner, who refused to budge even a bit back then).
With the huge amount of FDI coming into this sector, and a forecast of strong demand, looks like the good times are here for a while.
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