| Real estate stocks in India are the most | | | | and Poland. |
| expensive in the world even as they give lower | | | | It was over 10 per cent for markets like |
| returns than most of the emerging as well as | | | | Germany, Finland, Greece, Ireland, Norway, |
| developed markets including China, Singapore, | | | | Sweden, China, Indonesia, Malaysia, Philippines, |
| Hong Kong and Australia. | | | | South Africa, Taiwan and Thailand. |
| The revelation has come in the backdrop of a | | | | The rally in the emerging market realty stocks, |
| seven-year bull run in the global property stocks | | | | appears to be mostly driven by the Chinese |
| coming to an end in the second quarter of 2007, | | | | stocks with top five global gainers for the quarter |
| although emerging markets bucked the trend, | | | | coming from China. |
| according to second-quarter review of property | | | | Globally, property stocks fell by 4.5 per cent on |
| sector by international investment services firm | | | | an average in the quarter as measured by the |
| Standard & Poor's. | | | | S&P Citigroup Global Property Index with sharp |
| A comparison of price to earnings ratio of stocks | | | | falls being registered by the stocks from the US, |
| from various countries showed that valuation of | | | | Europe and other North American markets. |
| property stocks from the US and UK moved | | | | However, emerging market stocks delivered a |
| lower, while those from emerging market | | | | positive return of 19.4 per cent in the quarter and |
| continued to grow. | | | | 26.7 per cent since the beginning of 2007. On a |
| P/E ratio is considered as valuation benchmark of | | | | one-year basis too, the emerging markets |
| a stock where a higher ratio indicates an | | | | crossed the global average of 27.8 per cent by a |
| expensive stock while lower P/E signifies a | | | | wide margin, registering a gain of 90.6 per cent. |
| cheaper stock. | | | | Top five performers were Medinet Nasr Housing |
| P/E ratio for Indian stocks for the trailing 12 | | | | from Egypt, China Vanke Co, Beijing North Star |
| months was highest among all countries, while | | | | Co and Shg Lujazui from China, besides Amata |
| return on equity (ROE) was second lowest among | | | | Corp from Thailand. |
| all emerging markets and lower than most of the | | | | "A prolonged seven-year stretch of continuous |
| developed markets. | | | | gains, leading to excessive valuations, decreasing |
| The S&P study put the last 12-month P/E for | | | | yields and a legitimate desire for profit taking |
| Indian stocks at 209.30, against just 29.69 in | | | | caused a sell off in the sector," Standard & Poors |
| China, 39.90 for the US and 3.18 for the UK. On | | | | Index Services Vice President Alka Banerjee said. |
| ROE front, Indian stocks gave a 7.15 per cent | | | | She said that after such a bull run, global property |
| return, lower than the global average of 7.3 per | | | | and REIT stocks finally gave back some of the |
| cent. | | | | returns that have made them such an attractive |
| While India's ROE was higher than that of the US | | | | investment in the last few years. |
| (6.2 per cent) and the UK (3.05 per cent), it was | | | | REIT indices for Europe, US and the rest of the |
| the second lowest among emerging markets | | | | world fell, while Asia was the only market to post |
| after Turkey's 4.2 per cent. | | | | a gain with a modest rise of two per cent, she |
| Besides, ROEs were more than 20 per cent for | | | | said, adding that UK REITs performed dismally. |
| stocks from markets like Denmark, Egypt, Israel | | | | |