Have investors ignored weak home sales, large inventories and the drop in new launches that portray the pain in the sector? The answer is that the listed realty firms focused on financial discipline, before pushing sales. Unlike small developers who were stranded for even working capital during the recent banking crisis, large listed firms pushed sales through marketing incentives. In other words, the movement of the Nifty Realty index is a reflection of investor confidence in large property developers. In this backdrop, large firms have had to tap in to a greater extent to the commercial property market in the last three years.

Source: Mint July 04, 2019 08:03 UTC