With the housing cycle turning, domestic brokerage and research firm Edelweiss believes that Mumbai realty sales would remain healthy which in turn would benefit real estate developers Godrej Properties, Oberoi Realty, Macrotech (Lodha) and Sunteck Realty.
Consolidation is the driving feature of India’s property space and covid-19 has only accelerated the process. Brokerage house Edelweiss believes buoyancy in sales would sustain going ahead driven by improving launches, diversification, and market share gains.
“The Mumbai market has been stable despite interest rate hikes and levy of metro cess. Increase in the general level of wages and employment opportunities coupled with improved affordability and return-to-work scenario is expected to keep the home buying activity healthy,” the note stated.
All in all, the brokerage house believes that Mumbai-based organized developers such as Godrej Properties, Oberoi Realty, Sunteck Realty and Macrotech Developers would benefit from a revival in housing sales in Mumbai and has ‘Buy’ tags on these four realty stocks,
The number of housing units registered in Mumbai in August 22 declined 25% MoM (up 26% YoY) to 8,552 units as homebuyers brought forward their purchases to July 2022 on anticipation of further rate hikes by the Reserve Bank of India (RBI) in August . Still, this was the best performance for any August month in a decade, as per Edelweiss.
About 95% of the properties registered during August 2022 were bought in the same month. The overall value of units registered in July 2022 at around 107 bn was down 22% MoM (up 27% year-on-year or YoY). For Maharashtra at large, registrations in August 2022 at 112,438 units were down 8% month-on-month (MoM) (up 6% YoY). Registrations in Delhi at 9,572 units were also down 9% from the previous month but just 1% from the year-ago period, it highlighted.
Indian real estate market didn’t perform for the last five years but it has been showing a healthy recovery since last year where the sector is bottoming out in terms of both volumes and prices.
