Realty developers planning to float IPOs: Are these good option for Investors?

Real estate has always been an alluring area of investment. Investors, businessmen always put in their money in property since it has got the best return on a long term basis. We know high risk, high return. Thus, it applies to a risk averse investor. Thus, this sector is surely to do well. And, thus investing in the IPO of these companies, will be profitable. But, before investing we need to look out for what their plans are, as in, where are they going to invest our money. If the property developers are mainly into commercial property development, we need to see the location and other factors. Since, besides property development, we need to see the demand in that area. What kind of development is necessary. Thus, if everything falls into place, this is one of the best and ever lasting industry to put in money.

Regards,

Utkarsh

Yes i do believe that these are good option for the investors. 

With the revival of the economy, the real estate has also moved up sharply, these companies are been able to sell the properties at better rates, the cash flow is good now. The land banks are now been utilized and new projects are coming, we all know all the major reality players have big land banks but they were not comin up with new projects in the last 1 year.. Now as we see improvement in economy, consumer confidence, the reality firms are a good option of investment..

Definitely, the upturn is providing opportunities for the investors.  But the due dilignece exercise should be meticulous, lest the investors are caught in the quick sands of the realty sector.  Last time, the investors lost their shirts minly in this sector.