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Downfall in Real Estate Stocks to Continue
R Venkat Subramanian, Head – Alternate Investments Group at Kotak Securities feels that real estate stocks will continue to struggle. Subramanian told CNBC-TV18, “I think real estate stocks will continue to struggle. There is no major case for real estate stocks to do well from here; the numbers have been bad, the stock prices have fallen but it still doesn’t give you a condition that they have to start going up from here. There is demand for the kind of property that the large real estate companies are selling fallen drastically and the prices have not yet come to a level where anybody feels that they are getting a bargain.”
He further added, “Every other asset class in the world seems to have taken a big knock but some of the Indian real estate particularly in major cities there isn’t that kind of distress that you can say that look from here the prices cannot fall and hence people are going to step in and buy. The balance sheet of all these companies are getting worst and if at all there is any stability in the sentiment they may get some equity to sort of continue to survive that’s not going to make the existing shareholders rich. So I think that’s a sector, which will meander around here without much of any possibility of an upside. So I would ignore getting into real estate.”
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