Nifty Realty was the top sectoral gainer on June 1 morning, as the index got a boost from an encouraging trend in real estate registration data in Mumbai, which shows the demand for property has not gone down despite a rise in interest rates.
At 9.40 am, the index was up 1.38 percent. Sobha and Macrotech Developers were the top gainers, rising 5 percent and 3 percent, respectively. Godrej Properties, Phoenix Mills and Oberoi Realty were the other big gainers.
Mumbai gained Rs 811 crore through property registrations in May in which 9,542 units were registered, CNBC-Tv18 reported. Though the number was 3 percent lower year-on-year, the total revenue collection of Rs 811 crore was 12 percent higher from Rs 727 crore in May 2022.
Analysts said property sales maintained their pace. Moreover, the transaction value of property rose over the year, leading to higher revenue collection.
Out of the 9,542 units registered, 84 percent were residential units or homes. On average, the daily property registration stood at 308 units — the second-best for May in the last decade, CNBC-Tv18 said. Follow our live blog for all the market action
New projects gaining ground
New projects are getting wider acceptance among buyers, which is a good sign for the sector. Anarock, a property consultant, said while ready-to-move-in homes still top the wishlist of most homebuyers in the top 7 cities, newly launched units are gaining increasing acceptance.
The latest data shows that out of approximately 1.14 lakh homes sold in Q1 2023 across the top 7 cities, over 41 percent were in newly launched projects. In comparison, the sales share of newly launched homes was much lower in the corresponding period of 2019, when just 26 percent of about 78,520 sold homes were in new projects.
“For the longest time, ready-to-move-in homes remained in the highest favour with homebuyers because of the previously abysmal project completion track record in many areas of the country,” Anarock Group chairman Anuj Puri said. “This is now changing — under-construction homes in new launches are increasingly finding takers, though ready-to-move homes retain the top demand slot.”
Early-stage under-construction homes offer the kind of cost arbitrage that make residential real estate attractive to investors, who have largely given housing a miss over the last three-four years. However, some caution is also warranted, said analysts, as accelerated investor activity has historically led to unreasonable price hikes, which eventually throttle the overall housing market growth story.
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