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Is Liquidity back in Real Estate ?

With a stable government at the centre and bulls back in stock market, suddenly there seems to be no problems of liquidity. Real estate stocks finally are back on radar of investors. Most of the stocks in the real estate and infrastructure sector have doubled from their recent lows. Corporate India's outlook has turned positive.The projects they had shelved after the global economic slide due to lack of liquidity are back on their agenda.
Restructuring of debt and focusing on new target base like small and affordable housing units has helped many realty companies to shore up their sagging bottomline. Companies like DLF and Unitech has lowered their prices to generate sales. DLF and Unitech were successful in raising money from the markets. Another real estate company India Bulls has also announced that they are going to raise money from markets. According to market experts “stable government with less volatile stock markets should open new avenues for raising funds, especially for real estate and infrastructure sector”..
Representatives of various banks have come on record to say that banks have surplus funds to meet the demands of companies to invest in infrastructure projects. But lot depends on government action in next couple of months. It is very important that government gives due importance to infrastructure by starting more infrastructure projects. It is estimated that about $700 billion worth of investments will be channelled to improve India's infrastructure. The thrust on infrastructure is also important from the point of job creation.
It seems that election results have given new impetus to markets. Sentiment has improved which has given a lot of confidence to retail investors as well as to the Corporate India. If macro economic conditions improve and government is able to control fiscal debt, spending power of consumers is bound to increase. Demand for housing projects would be back and that would mean early christmas for real estate companies
 
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