Click to play videoNew Delhi: The Dubai jitters had little impact on the BSE Realty Index that closed 0.55 per cent down on Friday.
Companies are confident it won't have major ramifications in India. DLF, Unitech, HDIL AND Sobha say that they have no direct exposure in Dubai. However OMAXE will be putting a Rs 2,850 crore plan on hold. The company has paid rs 50 crore to Nakheel but the land has yet not been acquired.
Mumbai-based Hiranandani, in its last lap of constructing Marina, its only project in Dubai, has said, that it will deliver this project by June 2010, but will put on hold plans on its second project for the time being.
Chairman Hiranandani Constructions, Niranjan Hiranandani says, "I am glad to inform you that 97 per cent of this project has been sold. We have already completed 80 stories of this building, received 65 per cent of the money from investors and buyers of this project. As it stands today, we have no debt in the Dubai market, we don't owe any money to anyone."
Emaar-MGF, a joint venture between Dubai-based Emaar Properties and India's MGF developments has said it will not be impacted by the crash. It has Rs 3,850 crore IPO on the cards but analysts are now questioning the fate of the sector's robust IPO pipeline.
Several real estate companies have filed draft red herring prospectus offering to lap up more than Rs 10,000 crore from the primary market in the next two months. But now there is a fear that should the markets correct or the foreign investment flow get impacted, will these companies will get the kind of valuation they are looking for?
SP Tulsian of sptulsian.com says, "It will have a direct effect on the Indian market on the realty stocks. Common HNIs invest in both India and Dubai and now there may be a comparison. In any case we have seen demand tapering in the Indian real estate market in Mumbai and NCR in the past one-and-a-half months."
Experts say the Dubai jitters may impact demand from HNIs adversely.
(For updates you can share with your friends, follow IBNLive on Facebook, Twitter, Google+ and Pinterest)
More on IBNLive Right Now
TOP NEWS
MOST SHARED
PHOTOGALLERY
