LODHA, GODREJ PROPERTIES, OBEROI REALTY, SUNTECK: 4 REAL ESTATE STOCKS TO BUY AS MUMBAI REGISTRATIONS JUMP 13% IN JUNE
With the monthly housing registration data in Mumbai coming in strong and hopes that interest rates would soon ease, Nuvama Institutional Equities said real estate developers focusing on Mumbai real estate market such as Godrej properties Ltd, Oberoi Realty, Macrotech Developers Ltd (Lodha) and Sunteck should do well going ahead.
Data showed the number of housing units registered in Mumbai shot up 13 per cent YoY to 11,673 units in June. The overall value of units registered climbed 18 per cent YoY to Rs 16,900 crore. The average ticket size also inched up 4 per cent YoY for the month.
Net-net, the year 2024 has seen registrations of 72,492 units in Mumbai so far, translating to a growth of 16 per cent YoY. By value, sales at Rs 97,900 crore in 2024 are up 5 per cent YoY year-to-date.
"With the RBI pressing the pause button on rate hikes, we believe Mumbai’s realty sales would improve going ahead. This along with the comfort over valuations shall benefit Mumbai-based players—Lodha, Oberoi, Rustomjee, Godrej Properties, and Sunteck," it said.
Nuvama said the buoyancy in sales would sustain driven by robust business development targets, pickup in launches aided by cash flow improvement, interest rate stabilisation, diversification and market share gains.
Increase in wages, employment opportunities and return-to-office are likely to keep homebuying activity healthy, it said.
"All in all, we argue Mumbai-based developers such as Macrotech Developers (BUY), Oberoi Realty (BUY), Godrej Properties (BUY), Sunteck Realty (BUY) and Rustomjee (not rated) would benefit from strong housing sales in Mumbai," the domestic brokerage said.
Nuvama said as much as 91 per cent of the Mumbai properties registered in June were in the western and central suburbs (share of 49 per cent and 42 per cent, respectively). While South Mumbai contributed 7 per cent to the new registrations during the month, Central Mumbai comprised the balance 2 per cent registrations.
"Homes of 500–1,000 sft were the preferred choice of buyers, constituting 46 per cent of the total registrations during the month. The share of apartments up to 500 sft stood at 36 per cent while the share of apartments measuring less than 1,000 sft was 18 per cent," it said.
2024-07-02T07:45:06Z dg43tfdfdgfd