Fear Comes to India’s Property Developers
If completions continue at their current pace, buyers may turn anxious about financially weaker Indian developers.
Photo: Sunil Ghosh/Hindustan Times/Getty Images
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With markets from Tokyo to New York on edge this week, the warning sign flashing around a large Mumbai builder didn’t get much attention. But Indian investors were keeping a close eye. When Oberoi Realty Ltd. missed analysts’ forecasts for sales and profit and posted a smaller operating margin in its residential unit, there was a stampede to get out of property stocks.
Unease with India’s real-estate developers has been growing for some time. The BSE Realty Index is down more than 30% from its peak in June 2024. This week, though, the sense of foreboding deepened. And the reason for that goes back to the stock market.
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