We foresee a turnaround in the second half of 2009
Covering the property sector makes us feel like Alice tumbling down the rabbit
hole, not really sure when, where and how it will end. More importantly, is there
really a 'wonderland' of multi-baggers at the bottom and is it time to start chipping
away? We think so. We believe the Indian real estate stocks will bottom out in 6–9
months' time. The key reasons for the sell-off in the property names were the
unprecedented tightness in liquidity and demand destruction. We expect to see
some capital flow back (selectively). We foresee physical market prices staging a
recovery in late 2010 but do not expect stocks to wait that long.
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