'Stay off real estate' say investment consultants, who also warn clients still optimistic about the prospects of the sector to tread with 'extreme caution.' Worse, of late, even some mutual fund managers have joined the chorus, questioning the veracity of the claims of a turnaround made by realty firms.

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

'We are not recommending the 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 a wealth 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 KR Choksey, chairman, KR Choksey Shares and Securities, one of the oldest broking firms of Dalal Street.

Times of India