Stock bulls storming into flats! | india | Hindustan Times
Today in New Delhi, India
Nov 19, 2017-Sunday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Stock bulls storming into flats!

REAL ESTATE is in for a metro boom here with a large number of stock investors plunging into high-worth flat bookings. With about 10,000 flats (each costing in the range of Rs 30 to Rs 35 lakhs) expected to come up in the city during the next three years, more and more HNIs (high networth individuals ) are booking flats in bulk as a hedge against their current ?over exposure? in the stock market. Interestingly, real estate agents especially in Delhi and Mumbai currently have bulk bookings of flats made by HNIs belonging to Lucknow.

india Updated: May 06, 2006 00:49 IST

REAL ESTATE is in for a metro boom here with a large number of stock investors plunging into high-worth flat bookings. With about 10,000 flats (each costing in the range of Rs 30 to Rs 35 lakhs) expected to come up in the city during the next three years, more and more HNIs (high networth individuals ) are booking flats in bulk as a hedge against their current “over exposure” in the stock market. Interestingly, real estate agents especially in  Delhi and
Mumbai currently have bulk bookings of flats made by HNIs belonging to Lucknow.  While, it is still unclear why many HNIs aren’t approaching local real estate agents in Lucknow to book properties,  market analysts say that these HNIs deal only with large real estate agents with a long list of properties on sale across the country.

“The booking of  flats being made by HNIs through real estate agents in the metros are 100 per cent genuine and are not at all speculative in nature. We would consider the bulk bookings of flats as a healthy trend as the Indian real estate market is booming and there is no reason why investments in property should not flow into tier-II cities such as Lucknow,” commented Sudhir Halwasiya, Secretary of UP Real Estate Developers Council.

He said different class of investors adopt different strategies to invest in real estate. The government policies on housing development are very investor-friendly which is set to bridge the gap for housing demand in the coming years.

“About 75 per cent of the investments for new flats in Lucknow is coming through housing loan channels,” Halwasiya said. “There are about 200 flats expected to be constructed in Gomti Nagar itself in the next three years. We have not yet disbursed any loan for purchase of these flats to the borrowers.

However, the loan amount for these flats had been already sanctioned by HDFC”, stated Head (UP & Uttaranchal) HDFC Ltd Aseem Vivek,.

“There is no denying the fact that a lot of stock market money currently in the hands of HNIs is already flowing into buying real estate. What’s wrong with that? Real estate is also a great investment avenue for anybody who wants to hedge against uncertainities in any market,” added Mradul Verma, Regional Head of  Broking House Sharekhan.