Bearish about real estate stocks: Ambareesh Baliga

Ambareesh Baliga, COO, Way2Wealth Brokers Pvt. Ltd in a chat with ET now shares his views on real estate stocks.

ET Now: What about DLF or the other real estate stocks

Ambareesh Baliga: Price of DLF can come down to levels of about 150-155. Since real estate prices have not corrected till date, most of the builders have been able to hold onto the prices. Looking at the prepayments, which fall due in the next three months and possibility of defaults with some of the midsized builders, there could be a property price crash which will affect all the builders.

The listed names will come down from where they are right now, so the only sort of stocks you could actually look at possibly post that fall would be the ones, which are least leveraged.

Possibly a stock like Oberoi’s. When there is a property price crash, it could be a positive trigger for the sales to take off as lot of people are just waiting for this sort of a crash. That’s the time the property sales will actually increase.