Indian brokers and fund managers are warning investors not to bet on real estate firms.

They are also warning their clients, who are still optimistic about the prospects of the sector, to tread with ‘‘extreme caution” according to the Times of India. Worse, of late, even some mutual fund managers have joined the chorus, questioning the veracity of the claims of a turnaround made by Indian realty firms.

The news comes at a time when most Indian real estate players are claiming that they have turned the corner with many firms lining up with initial public offers (IPOs) in the coming months.

‘‘We are not recommending the Indian real estate sector to our clients. After the slump last year, we now find it difficult to take a call on the sector. The claims made by the companies, the financials… everything is questionable,” says awealth manager who doesn’t want to be named. ‘‘The valuations claimed by these companies, their land bank, title…these are problematic areas. There are a lot of ifs and buts involved,” says K R Choksey, chairman, K R Choksey Shares and Securities, one of the oldest broking firms of Dalal Street.

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Tags: Indian Real Estate, Indian real estate companies, Indian realty

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