Analysts see more headroom for quality real estate stocks

At the bourses, most real estate stocks have given a healthy return in CY19. Godrej Properties, for instance, has rallied 37 per cent.

Real estate sector has been a surprise performer in calendar year 2019 (CY19) at a time when most players in the segment had been, over the years, saddled with unsold inventory and liquidity issues. The Nifty Realty index has been an outperformer, rallying 19 per cent thus far in CY19, as compared to 10 per cent rise in the Nifty50. 

Analysts attribute this outperformance to a steady fall in interest rates through the year and implementation of Real Estate Regulation and Development Act (RERA) that has helped clean up the sector. On its part, the Reserve Bank of India (RBI)