With the turn of the housing cycle, home brokerage and research firm Edelweiss believes Mumbai Realty sales will remain healthy, benefiting real estate developers Godrej Properties, Oberoi Realty, Macrotech (Lodha) and Sunteck Realty.
Consolidation is the driving force of India’s property sector and COVID-19 has only accelerated the process. Brokerage house Edelweiss believes that the uptrend in sales will continue on the back of improving launches, diversification and market share gains.
“Mumbai market has remained stable despite hike in interest rates and imposition of metro cess. An increase in the general level of wages and employment opportunities as well as better affordability and return to work outlook is expected to keep home buying activity healthy,” the note said.
Overall, the brokerage house believes that Mumbai-based organized developers such as Godrej Properties, Oberoi Realty, Suntec Realty and Macrotech Developers will benefit from the revival in housing sales in Mumbai and all four have ‘Buy’ tags. realty stock,
The number of housing units registered in Mumbai declined by 25% MoM (up 26% YoY) to 8,552 units in August 22 as homebuyers extended their purchases to July 2022 in anticipation of further rate hikes by the Reserve Bank of India (RBI) in August. carried forward. , Still, according to Edelweiss, it was the best performance for any August month in a decade.
About 95% of the properties registered during August 2022 were purchased in the same month. The total value of the units registered in July 2022 is approx. 107 bn was down 22% MoM (27% year-on-year or YoY). For Maharashtra at large, registrations were down 8% month-on-month (MoM) (6% YoY) at 112,438 units in August 2022. The registration of 9,572 units in Delhi was also down 9% compared to the previous month, but down just 1% from the year-ago period.
The Indian real estate market has not performed well for the last five years but has been showing a healthy recovery since last year where the sector is at the bottom both in terms of volumes and prices.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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