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Mahindra Life Space developers, Godrej Properties , DLF , Oberoi Realty , Brigade Enterprises. Lodha (Macrotech Developers) , Suntech Realty others saw their share prices rise up to 4.3% as Nifty Realty Index rose 1.43%. Notably Nifty Realty Index was the largest gainer post Reserve Bank of India (RBI’s) Monetary Policy Committee (MPC) kept interest rates unchanged.
The interest rates being kept unchanged kept sentiments strong for realty sector stocks as Mahindra Life Space developers, Godrej Properties , DLF , Oberoi Realty , Brigade Enterprises to Lodha (Macrotech Developers) , Suntech Realty and others. The steady interest rates will mean the steady EMI structure while expectations also remain strong that Interest rates cuts may happen by October 2024.
Nayan Raheja of Raheja Developers said that “the growth trajectory of the realty sector remains positive, consumption is rising, and more and more people are investing in the mid, premium, and luxury housing sectors”.
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As evident by recent Q1 reports, the pace of new launches has been accelerated by the developers. India is moving forward at a steady pace, and the RBI’s decision to maintain the repo rate at its current level will boost the economy and enthuse the sector said Raheja, who added that it will also provide some relief to borrowers as their EMIs will not rise.
The Realty Stocks as Mahindra Life Space developers, Godrej Properties , DLF , Oberoi Realty , Brigade Enterprises to Lodha (Macrotech Developers) , Suntech Realty and others have remained in favor for past one year. During FY24 the real estate stocks as Mahindra Life Space developers, Godrej Properties , DLF , Oberoi Realty , Brigade Enterprises, Lodha (Macrotech Developers) , Suntech Realty and others surged leading to an astounding 132.5% return by the index and was among the best-performing sectors of the year.
Market perception of robust residential demand has remained elevated. The persistently favorable demand conditions suggest that launch momentum is currently being monitored closely.
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After a successful FY24, low inventories, steady price increase are likely to provide a favorable demand environment for real estate developers in FY25, said analysts. All this should benefit Mahindra Life Space developers, Godrej Properties , DLF , Oberoi Realty , Brigade Enterprises, Lodha (Macrotech Developers) , Suntech Realty and others.
In a recent report analysts at Jefferies India Pvt Ltd report said that Developers like DLF , Prestige Estate Projects, and Lodha (Macrotech Developers) have already guided for a 15-20% pre-sales rise in FY25.
To increase trust in the same, granularity on launches and inventory will be essential. Also to be sure the first quarter or (Q1FY24) may be slow because of likely approval delays relating to the elections.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions
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Published: 05 Apr 2024, 04:19 PM IST
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