What is the appetite for the Indian realty space?

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What is the appetite for the Indian realty space?

Most of the real estate stocks have been doing very well. What is the appetite for Indian listed real estate stocks and for the sector in general? HSBC had done a big real estate road show a few days ago in Hong Kong. Anish Jhaveri, Head, Equity Sales, HSBC gives his perspective on the realty space.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Indian developers queue for IPOs, foreign funds Indian realty space teeming with foreign players Rental housing is going to get a boost: Vakil ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets DS Kulkarni BSE | NSE 29/05/12 Are Mutual Funds betting on DS Kulkarni? Other Stocks in this news Ganesh Housing Corporation | IVRCL | Prajay Engineers Syndicate | Larsen and Toubro | Ansal Housing and Construction | Kshitij Investments Ltd |

Most of the real estate stocks have been doing very well. What is the appetite for Indian listed real estate stocks and for the sector in general? HSBC had done a big real estate road show a few days ago in Hong Kong. Anish Jhaveri, Head, Equity Sales, HSBC gives his perspective on the realty space.

Anish Jhaveri, Head of Equity Sales at HSBC expects 30% CAGR for the real estate sector over the next three years. Jhaveri believes that the only concern in the Indian real estate is that of project execution.

He further adds that most of the investors at the Real Estate Summit were clearly of the view that Indian real estate sector is not just about a few companies, which have a pan-India footprint, but also about smaller companies, which have a regional presence and regional expertise.

Excerpts of CNBC-TV18's exclusive interview with Anish Jhaveri:

Q: What level of interest do you see in the listed real estate space in India?

A: We see a great opportunity for investors out here. What we saw in Hong Kong and Singapore last week, was clearly the fact that investors wanted to find out how big is the opportunity, how scalable is the model and which geographies across India look good.

Most of the investors were clearly of the belief that Indian real estate sector is not just about a few companies that have a pan-India footprint, but also about smaller companies, which have a regional presence and regional expertise. So we will clearly see that this sector has a huge potential in the next 4-5 years. We clearly see a 30% CAGR growth for this sector in next three years.

Q: Which companies did you showcase at this Real Estate Summit? Were there any concerns, which were expressed about how these companies are being valued, particularly with reference to the landbanks that they own?

A: The idea behind our real estate road show was very clearly to show how each region was panning out, what stories were panning out in each state. We had IVRCL , DS Kulkarni , Ambuja Realty, Prajay Engineering , Ganesh Housing , Ansal Housing and Kshitij . So we had two real estate consultants talking to investors, as well as six listed and unlisted companies talking to investors. We had about 40-45 investors across Asia, who wanted to come and see how big the opportunity is. 

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