SP Tulsian`s view on realty space

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SP Tulsian`s view on realty space

SP Tulsian of sptulsian.com shares his view on realty space.

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Excerpts from Closing Bell on CNBC-TV18 Watch the full show » ALSO READ See previous views by SP Tulsian See what other Experts & Brokerages are saying about HDIL See messages about HDIL

SP Tulsian of sptulsian.com shares his view on realty space.

Tulsian told CNBC-TV18, "I am unable to understand the reason for such a big rise in all the real estate stocks. When you check the ground realty it is only the increases made by the builders or the developers more especially in Mumbai and that has not happened in NCR region but when you check the off take I don't think that off take has really being happening and if you take the case of HDIL , Unitech , DLF all of them have been selling their developed property largely the SEZ or the IT parks and all that at 70-75% of the rate what they would have otherwise would have sold to the actual user."

He further added, "Financial statements of the companies are not available but if you see those things happening as of 30th September you have not seen any substantial reduction in the debt of having taken place of all these companies so I take this rise just speculative in nature because we had the DC rules getting cleared about a fortnight back in Mumbai that has lifted the sentiment that now the projects will start getting clear and the development work will start. I agree that development work will start but you don't see the selling happening. In the projects which have a development life of about 5 to 7 years so probably I have my doubts that this rally can really sustain for a very long time. In fact one has to wait for the Q3 results of all the companies and then only one can take a call. I don't think that March situation will really be anything better than what they will be posting in Q3."