Stock prices of participants who have low levels of debt and have not financed land acquisition using debt have outperformed the rest of the participants. Some of the participants have entered other business such as like insurance, mobile and hospitality trying to build a leverage using the existing real estate business. This diversification has affected the profitability and some of the participants have been exiting such investments of theirs.
Regulator in Pipeline Government proposes to set up a regulator for the sector mired with issues of transparency. This would provide welcome relief to the potential buyers from the unfair practices followed by the developers and this would increase buying in the long term. The Real Estate (Regulation and Development) Bill 2011 is expected to be tabled in the parliament in the winter session, after getting approved by the cabinet. The regulator would be responsible for – 1. Protect the potential buyers from the Fly-By-Operators.
36