Which are the best real estate in India right now?
These companies have been ranked as per their market capitalization. The higher the market cap, the higher the total value of the company.
Of course, there are other parameters you should take into account before forming a hard opinion on the stock valuation.
When should you invest in the real estate sector?
The best time to invest in the real estate sector is when valuations of real estate companies are attractive.
Stocks of real estate companies are riskier investments as their fortunes are prone to economic booms and busts. For this reason, they are called cyclical stocks.
Cyclical stocks can be used to generate high returns when the economy is doing well. However, before selecting a stock, always check to see if the industry is due for revival or not.
Where can I find a list of real estate stocks?
The details of listed real estate companies can be found on the NSE and BSE website.
For a curated list you can check out our list of real estate stocks.
What kind of dividend yields do real estate stocks offer?
The real estate sector does not have a consistent trend of dividend yields. Different companies have different dividend policies which vary depending on the owners discretion and the market scenario.
For more details, check out our list of top real estate stocks offering high dividend yields.
What are the metrics used to evaluate real estate companies?
A commonly used financial ratio in the valuation of real estate stocks is the Price to Book Value Ratio (P/BV).
One can also use Price to Book Value Ratio (P/BV) which compares a firm's market capitalization to its book value. The lower the ratio, the more undervalued the stock is and vice versa.
To find stocks with favourable P/BV ratios, check out our list of real estate stocks with their P/BV ratios.