Investors may have lost 1/3rd investment in real estate
Mumbai: Investors have pumped in USD 25
billion into the Indian real estate market over the last three
years but with land values having gone down they could have
lost a third of the value of their investment, HDFC chairman
Deepak Parekh said in a letter to shareholders.
Parekh said investors have invested over USD 25 billion
in Indian real estate through IPOs, QIPs (qualified
institutional placements), AIM listing (alternate investment
market) and foreign direct investment. A large part of these
funds were used for buying land at exorbitant prices.
"With land values having come down, my estimate is that
investors could have lost a third of the value of their
investment," he said.
Advocating caution, Parekh said investors in real estate
have to be more discerning. They should be more realistic on
valuation expectations and not throw caution to the wind, he
He also criticised the recent trend where housing loans
are offered at attractive interest rates in initial years.
"We are seeing some variations of teaser type housing
loans being offered. The lure of low interest rate at the
start of taking a housing loan is enticing. But are customers
being made aware of future implications," he asked.
Parekh noted that the genesis of the US housing crisis
lay in loans that offered artificially low interest rates in
the initial years but once the rate normalised, many found
themselves unable to service the loan.
These are the lessons one should learn from, he said.
However, the HDFC Chairman pointed out the same
disturbing trend being seen in India where some variation of
teaser type housing loans are being offered in the market.
"Are these lending institutions providing "what if"
scenarios to their customers, he asked.
More from India
More from World
More from Sports
More from Entertaiment
- Zee Media exclusive chat with 'Welcome to Karachi' cast
- Reservation issue: Police register case against Bainsla, 20 others
- Zee Media exclusive interview with Haryana CM Manohar Lal Khattar
- UP Minister allegedly threatens, abuses Gonda businessman
- Manali: Heavy corruption found in environmental taxes
- UP: Jammu-bound Muri Express derails in Kaushambi
- Five unmanned parachutes spotted over Mumbai airport
- Aapke Sitare: Astro prediction for May 24, 2015
- Watch: Fast N Facts @ 7:30pm
- Dawood's intercepted phone calls prove yet again he is in Pakistan
- One year of Modi govt: How satisfied is the common man?
- Jaipur girl Mini Rajpal wins Miss India Deaf 2015!
- CBSE Board Class 12th Exam Results 2015 declared
- Mumbai architecture creates double decker bus from scrap!
- One year of Modi govt: How satisfied is the common man? Part-2
- IPL 2015 Final: MI vs CSK - As it happened...
- CBSE.nic.in 12th XII Results 2015: CBSE Board (cbseresults.nic.in) Class 12th XII Exam Results 2015 to be announced on May 25
- Heatwave continues in North India; death toll in Andhra Pradesh, Telangana more than 400
- IPL 2015 final: Mumbai Indians thrash Chennai Super Kings by 41 runs to lift second title
- Heatwave claims over 550 lives so far, Delhi saw hottest day
- LIVE - Cbse.nic.in & cbseresults.nic.in Class 12th XII Results 2015: CBSE Board Class 12th XII Exam Results 2015 to be announced shortly
- Check cbseresults.nic.in for CBSE Class 12 result 2015
- Cbse.nic.in & cbseresults.nic.in Class 12th XII Results 2015: CBSE Board Class 12th XII Exam Results 2015 declared
- Kejriwal completes 100 days in office, AAP says centre 'shadow boxing' over row with LG
- Mathura rally: PM Modi slams 'corrupt' UPA regime, lauds NDA govt's efforts in past one year
- Two dead, over 100 injured as Muri Express derails in UP; Prabhu announces Rs 2 lakhs ex-gratia for kin of dead
- CBSE Class 12 results out: Here's how you can check
- PM Narendra Modi's Mathura rally: As it happened
- Not just today, Muslims feeling alienated since 1947: Najma Heptulla
- Check WBBSE (wbresults.nic.in) Class 12th Results: West Bengal Board (wbscvet.org) Higher Secondary Class XII Vocational Results to be declared today at 4 PM