Realty stocks were among the most sought-after on October 10 amid optimism over the festival season that is about to commence and encouraging second-quarter business updates from companies. Consequently, the Nifty Realty index was the biggest sectoral gainer at noon.
At close, the Nifty Realty index was up 4.01 percent, led by gains in Prestige Estates, which surged 8 percent. Sobha, Godrej Properties, Oberoi Realty and DLF had gained between 4 and 7 percent.
In the first half of the current financial year (H1FY24), the Prestige Group said it registered record-breaking sales of Rs 11,007 crore, up 69 percent from the year-ago period, and collections of Rs 5,380 crore, up 13 percent. Similarly, Sobha recorded its highest-ever quarterly sales value of Rs 1,724 crore, up 48.1 percent from the previous quarter.
Analysts have maintained their bullish stance on the real estate sector, expecting the sales momentum to continue. The sales would be higher especially during the festive season and as the Reserve Bank of India has held interest rates steady.
“I am overweight on real estate, hold 5-10 percent across portfolio. Looking at 8-10 percent volume growth and 7-8 percent pricing growth annually in real estate,” said Varun Goel, Head-Equity AIF at Nippon India AIF. “NCR market has seen the highest price appreciation. Will stay invested in real estate for the next three-four years.”
Unsold housing stocks in Tier 1 cities dropped to 5,08,464 units in the third quarter of this calendar year from 5,26,497 in the year-ago period, representing an 11 percent decrease, a PropEquity study shows.
On the other hand, new launches were up 2 percent in these cities at 97,871 houses in the September quarter from 96,408 in the year-ago period.
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The September quarter saw an 11 percent decline in new launches from the previous quarter due to lower demand following a rise in property prices as well as mortgage rates but that hasn’t deterred investors.
“Indian developers are strategically prioritising the reduction of older unsold inventory, resulting in a decline in unsold stocks, while also launching fewer new projects,” PropEquity said.
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