Avoid real estate for short-term play: Prashasta Seth, India Infoline
Prashasta Seth, Senior Fund Manager IIFL Wealth, India Infoline, in a chat with ET Now talks about the real estate space.
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| Prashasta Seth, Senior Fund Manager IIFL Wealth, India Infoline, in a chat with ET Now talks about the real estate space.
What is your view on real estate? Could people look at some of the stocks in this pocket?
It is a pariah kind of a sector at this point of time with nobody actually willing to look at it. So my sense is if you are again looking for a 1 or 2 quarter kind of a play, they might not do well and they could probably get sold off as the market comes down.
So 1 or 2 quarters probably no. But yes if you are looking for a slightly longer term. There is a huge amount of dichotomy between what you are seeing in the real economy in terms of real estate prices and what you are seeing in the prices that are conveyed by the real estate stocks. My sense is obviously that the real dichotomy is slightly overheated at this point of time and you could get some correction in the real estate prices. But even accounting for that, the stock should do better than the market if you are looking at a 20 to 18 months time frame.
But till the whole uncertainty about the global factors comes down and people start taking some larger amount of risk, probably real estate will not perform much better than the market. It probably might underperform on the downside and perform as much as the market on the upside.
What is your view on real estate? Could people look at some of the stocks in this pocket?
It is a pariah kind of a sector at this point of time with nobody actually willing to look at it. So my sense is if you are again looking for a 1 or 2 quarter kind of a play, they might not do well and they could probably get sold off as the market comes down.
So 1 or 2 quarters probably no. But yes if you are looking for a slightly longer term. There is a huge amount of dichotomy between what you are seeing in the real economy in terms of real estate prices and what you are seeing in the prices that are conveyed by the real estate stocks. My sense is obviously that the real dichotomy is slightly overheated at this point of time and you could get some correction in the real estate prices. But even accounting for that, the stock should do better than the market if you are looking at a 20 to 18 months time frame.
But till the whole uncertainty about the global factors comes down and people start taking some larger amount of risk, probably real estate will not perform much better than the market. It probably might underperform on the downside and perform as much as the market on the upside.
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