DLF, Unitech, Parsvnath Profits Down

I dont invest in realty. To me, their stock value and their underlying assets are over inflated and about to pop. Actually they did pop. How could they not. When you think of serving only a fraction of the population who want investments and brush off the rest who need a home, you are bound to suffer such consequences. 

Plagued by empty buildings, financiers turning their backs, and debt reaching its boiling point on their books, they suffered disastrously low profits. In the case of Parsvnath Developers, it was a drop of 95%.

Now they've woken up to the reality that low cost housing project are they key to sustaining growth. Premium apartments are a thing of the past, atleast for now. Its amazing that these guys with all their MBAs and certificates never look at how history has played out. They seem to get carried away by greed and began to believe that our economy will continue to grow forever. If this were not true, they would be quite diverse enough in their market segments to weather out this storm.

Better late than never, these real estate giants have realized that the people, especially couples, who need flats in urban areas are those with Rs 20k to 40K a month income working in sectors like IT, who want to put their kids in better schools and the old folks who want to live off their pension. They are the ones who need better options than living in a rented apartment. They don't need swimming pools and gyms. What they need are strong walls with a water proof ceiling in a safe locality. The recession, for greedy people like the realties, is a good wake-up call.