Real estate assets could rise in value, owing to the strong sales reported by the developers and robust outlook of the sector, said Sanjiv Bhasin, Director, IIFL Securities. To ride this expected growth, he favours buying real estate stocks as of now. “DLF and Godrej Properties are giving me the opportunity of the last two years,” Sanjiv Bhasin said on FinancialExpress.com Manage Your Money. Seconding his view, his co-panellist at the event Gurmeet Chadha, CEO of Complete Circle Consultants, said that Real Estate has done quite well in the last two years, considering the trajectory charted by the sector in years prior.
Real Estate boom
“Real estate is here to stay if we like it or not. We still have DLF, Godrej Properties, and Oberoi Realty – the best of best doing well. Non-players are now being wiped out,” Sanjiv Bhasin said. He added that with the weakening Rupee, the real estate market is seeing inflows of NRI money and with the strong fundamentals of big companies, Bhasin said that real estate stocks could outperform.
Another asset class linked to the real estate space REIT (Real Estate Investment Trust) is also seen as a good asset. “It is quasi-debt, allowing you to buy small quantities, and has transparency in terms of interest and dividends and has liquidity,” said Gurmeet Chadha. He, however, asks investors to not confuse REITs to be as safe as a physical asset. India has three REITs listed on the stock exchanges – Mindspace REIT, Embassy REIT, and Brookfield REIT. Sanjiv Bhasin, calling REITs the mutual funds of real estate, said that in 20 years REITs will be the asset class to own.
Equity returns to beat other asset classes?
Bullish as always on Indian equities, Sanjiv Bhasin said investing in stocks could potentially generate the best possible returns over the next few years. “At 18,000 everybody wanted to know what to buy tomorrow but at 15,000 Nifty you have deserted. Once it goes back to 17,000 people will regret it,” he added. Sanjiv Bhasin also believes the Nifty will hit a fresh high this year. “The under-ownership and pessimism are at their highest and it has been easy for FIIs to sell owing to the liquid market. They (FIIs) could not sell in China because of valuations,” Bhasin said while adding that a return of FIIs might not be so easy. Sanjiv Bhasin said that the second half of 2022 can be very surprising for domestic stock markets.
