Report On 'Real Estate: The unwind and its side effects' By Ambit Capital

Discussion in 'Must-Read Interviews, Articles & News Items' started by Vidhi Khanna, Jul 18, 2015.

  1. Vidhi Khanna

    Vidhi Khanna Active Member Staff Member

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    We are seeing a broad-based real estate pullback, with prices correcting in most tier-1 and tier-2 cities alongside sharp drops in transaction and new launch volumes. The drivers for this slowdown are a mix of supply-side factors (banks have pulled back lending to developers) and demand-side factors (the Black Money Bill has created fear amongst speculators). The result is not just a drop in demand for building materials and challenges for lenders with big mortgage, LAP and housing finance books, but also a generalised slowdown in GDP growth, as the sector which drives 50% of India’s capex and 30% of its jobs conks off. Our four large-cap SELLs on this real estate correction are Ultratech, Asian Paints, ICICI and HUL.
     

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