Real Estate Bill just a temporary sentiment booster, says Mehraboon Irani on realty stocks

In a chat with ET Now, Mehraboon Irani, Nirmal Bang Securities, shares his view on real estate stocks.

ET Now: What is your view on real estate stocks? Will the Real Estate (Regulation and Development) Bill change the scenario?

Mehraboon Irani: It is a temporary sentiment booster. Activities in our domestic real estate sector just cannot be compared to how things happen even in our neighbouring regions like Singapore and Hong Kong. There is no schedule, no disciple among domestic real estate developers.

If anything, the Bill will try and put some discipline among the real estate developers. It will be positive from the consumers' point of view.

I do not believe that the Bill will to allow real estate prices to go up and be a big positive for developers. Unfortunately, most real estate developers in have their own way to do things; there is no discipline amongst them and we all know that. Having said that, the Bill will bring in some discipline; it will put some resistance on their part.

ET Now: Does it bring in investor sentiment favourably into the sector because there is discipline amongst the developers?

Mehraboon Irani: To some extent, yes. But the end of it, investor sentiment becomes favourable only when you have real estate prices affordable, and that is not up.