After 37% jump in FY18, analysts turn cautious on real estate sector

After rallying nearly 37 per cent in the last financial year (FY18) as compared to around 10 per cent rise in the benchmark Nifty50, the Nifty Realty index has performed in line with the broader markets thus far in FY19.

The huge outperformance in FY18, analysts say, was on account of implementation of the Real Estate (Regulation and Development) Act (RERA) and government’s focus on affordable housing amid strengthening economy and steady interest rates. The sharp run-up has now turned analysts cautious on this space.

Among individual stocks, Unitech, Sobha, HDIL, DLF, Indiabulls Real Estate and Prestige Estate Projects have