Here is the Chairman’s annual letter from HDIL (Housing Development & Infrastructure Ltd), one of India’s leading real estate company with a strong base in Mumbai metropolitan region (MMR), having a successful track record in every kind of real estate project. The letter offers a good perspective to real estate investors like us.
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Dear Shareholders,

The year 2011-12 was a year of major economic upheaval, marked by sluggish growth, global uncertainties and low market sentiments. The real estate sector in India was severely impacted by the liquidity
crisis, high inflation, slowdown of growth, consumption and investment cycle. The slowdown in the economy and the rise in real estate prices during previous years plummeted demand across all segments of the
sector leading to a decline in overall growth in Real Estate sector during the year.

The Reserve Bank of India (RBI) increased the interest rates, to restrict inflationary forces and to curtail excessive spending. As a result, the cost of borrowings also increased thus affecting the
overall performance of the sector and thus needless to say, the industry cannot be completely immune to such repercussions. Residential segment of Real Estate saw curtailed demand due to rising mortgage
rates. Changes in regulations within Mumbai and its development control regulations also contributed to the delays in its approval processes. Continue reading Annual Letter from HDIL (Housing Development & Infrastructure Ltd) →