Impact Of Share Market On Real Estate in India

Just fort night back we have seen many Indian promoters figured in the worldwide billionaire list. The Sensex’s climb previous year saw the likes of DLF’s KP Singh coming out of nowhere and becoming the third richest Indian for sometime. And there was much rumour as to when, rather than if, Mukesh and Anil Ambani would eclipse Bill Gates.

However, the recent stock market chaos has resulted in an erosion of net worth of India’s wealthy lot, which is just as spectacular as the rise was. In all, the net worth of India’s top 10 promoters is down by 35 percent since the peak in early January.

Indian biggies including Mukesh Ambani, DLF’s Singh and Sunil Mittal of Bharti Airtel have seen their combined net worth shrink by around $100 billion in the preceding two months.

Topping the list of losers is India’s biggest real estate industrialist KP Singh. His net worth has almost halved to $22.5 billion from a peak of $45 billion in January.

One more real estate baron to lose acutely during this meltdown is R. Chandra of Unitech, whose market cap has halved since this bear phase began. The Hinduja Group too has taken a knock with the market value of its holdings down by nearly 43 percent.

The promoters who have seen maximum wealth erosion are those with business interests in real estate, power and energy.

5 Comments

  1. Posted April 2, 2008 at 5:11 am | Permalink

    Share market is that kind of market that can lift you from earth to sky and also can drop you from sky to drop so be care full before investing in it. you must had seen case DLF’s KP Singh.

  2. Posted April 5, 2008 at 3:02 am | Permalink

    I hope the market will re-establish itself very soon.

  3. Posted April 5, 2008 at 6:55 am | Permalink

    According to me ,there is not a such great impact of share market over real estate before share market is going up-down in a daily basis but in a real estate there is continue boom or declined.

  4. Posted April 10, 2008 at 12:40 am | Permalink

    We can say nothing will happen because up and down is the part of life when market is going on loss the real estate will by default on down and when the market will be on hike it will be directly hike on Real estate

  5. riathareja
    Posted April 21, 2008 at 4:08 am | Permalink

    The momentary uncertain economic scenario, slowdown in export-driven industries, high interest rates and lacklustre credit growth in the real estate markets have raised the question of a slowdown in real estate market in India.Historically, real estate development in India has been highly fragmented. The nascent growth in our realty market, aided by copious flows of private equity, is helping the real estate development process get organised with increasing corporate and institutional participation. These developments, coupled with healthy economic growth indicators and a new-found comfort in this sector triggered a lot of activity and capital appreciation in the sector over the past few years. While the overall activity in the market remains healthy, the past 12-18 months have seen some degree of rationalisation in residential prices.The real estate story in India is on the rise. While more than 50 bigwig foreign funds have already checked in, the first half of 2007 will see at least 25 more funds making an Indian entry. This will mean that almost US$ 10 billion of foreign direct investment will be injected into the sector. Hotel developers have already announced thousands of square metres of land.For more view- realtydigest.blogspot.com

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