Since December 2007, the BSE Realty index is down nearly 90 per cent till January 25, 2017. However, it is up around 5 per cent on a year-to-date basis.
Calendar 2007 belonged to the real estate stocks, when the BSE Realty index surged some 75 per cent. The very next year, the index slipped over 85 per cent, and most of the these stocks have not been able to look up ever since.
Worse, things are projected to turn bad again this year, as industry watchers have broadly predicted up to 30 per cent drop in sales in 2017 on the back of the government clampdown on black money. The implementation of the Real Estate (Regulation and Development) Act, 2016 is widely expected to shake up the industry, leading to some consolidation.
Fitch Ratings expects property sales in India to fall by at least 20-30 per cent in 2017, owing to the disruption caused by demonetisation and a general caution among home buyers.