The Top 5 Real Estate Stocks for 2018

Guest Author | April 11, 2018, 3:37 p.m.

The real estate share market is not driving a lot of investors currently but one does need to remember that it is a cyclic sector. In the recent few years, the real estate market in India has undergone massive changes. This is in a large part due to the regulatory reforms implemented through frameworks as part of the Real Estate Regulatory Act (RERA), and Goods & Services Tax (GST) as well as an inability of many builders in delivering projects in time. However now it is mandatory for all the real estate projects to be in compliance with the provisions of RERA, which attempts to address a majority of consumer interest.

This will now make it quite difficult for fly-by-night operators to be in the market and only the professional and committed players will be able to navigate the roadmap. This is expected to benefit both buyers and sellers, in the long term and thus create positive sentiments for the sector.

The implementation of the regulatory mechanisms has inspired a higher level of confidence from the global investor community. As per certain reports the real estate sector may receive Private Equity (PE) investments amounting to more than US$4 billion during the current fiscal year. In parallel, global sovereign wealth funds which are traditionally quite risk averse and conservative in their investing approach have also begun increasing their exposure to the market. All these together augur well for the sector. Some key stocks that investors can opt for in this scenario are:

1.  Prestige estates projects ltd Share price : 309

The company with over 23 years of experience in real estate development is among the leading real estate development companies in south India. It has completed 142 real estate projects of approximately 27.09 million sq. Ft. The current market cap of the company is Rs. 11420.63 crore. The company has seen decent share price growth and is giving positive signals.

2.  Sobha ltd Share price : 550

Analyst reports suggest that this stock is expected to deliver above-industry growth with it being poised to deliver close to 20% growth over the next couple of years compared to the industry’s growth rate of 11 to 12 %. Recent quarterly sales results have also boosted the stock.

3.   Indiabulls real estate Share Price : 190

Indiabulls Real Estate recently registered growth riding on positive investor sentiments following the announcement of a business restructuring which is part of strategy to have a focussed approach on segments. The company’s profits are expected to grow by a double-digits over the next couple of years and thus the outlook is positive for Indiabulls Real Estate. Also higher cash flows is on the cards which is a good sign.

4.  Oberoi realty Share Price : 508

Oberoi realty with its market capitalization of IN₨159.94B is in the league of established companies and has been showcasing positive stock performance. IT is a low beta stock and is expected to perform consistently.

5.  Brigade enterprise Share price : 262

The shares of the Bengaluru-based Brigade Enterprises (Brigade) are a good bet right now. . The company develops and sells both residential and commercial property and owns and operates hospitality assets, offices and malls. The current market cap of the company is Rs. 3398.46 crore. The shares of the company are expected to bring in positive returns riding on the growth planned by company.

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