Lodha, Godrej Properties, and Oberoi Realty share: Mumbai registrations are up; what's next?

By Bricksnwall | 2024-03-04

Real estate sales in Mumbai will increase moving forward as a result of the RBI pausing rate hikes, which would help companies like Lodha, Oberoi Realty Ltd., Keystone Realtors Ltd. (Rustomjee), Godrej Properties Ltd., and Sunteck Realty.

Mumbai had 12,056 registered housing units, a 24 percent YoY increase. Even though there were fewer days in the month, registrations increased by 10% month over month. Nevertheless, the average ticket size decreased by 36% YoY (up 6% MoM) to Rs 1.22 crore due to the overall value of units registered falling by 20% YoY (up 16% MoM) to Rs 14,800 crore.

The rush by purchasers to purchase opulent residences in the wake of the government's intention to restrict tax deductions on capital gains obtained from the sale of residential property after March 31, 2023, caused the high base of February 2023.

In February and March of this year, the percentage of dwellings larger than 500 square feet rose to 45% (compared to 34% in February and 38% in January). The percentage of homes with 500–1,000 square feet decreased to 42% in February and March (45% in February and March-23, 43% in January and February-24). The demand is still highest in western and central suburbs, according to a report from Nuvama.

The domestic brokerage predicted that Mumbai's real estate sales would increase moving forward as a result of the RBI pausing rate hikes. It was stated that this would help companies based in Mumbai, including Godrej Properties Ltd., Microtech Developers Ltd. (Lodha), Oberoi Realty Ltd., Keystone Realtors Ltd. (Rustomjee), and Sunteck Realty.

The dominant trend in the Indian real estate sector is consolidation. We think that the sales buoyancy would continue to be driven by: i) strong goals for business development (see Building up business development); ii) an increase in launches, supported by improved cash flow (see Cash flow generation surges); iii) interest rate stabilization (see Housing stocks: Back in favor); iv) diversification; and v) gains in market share (see Real estate - Burning bright; hope for more)," stated Nuvama.

It stated that a rise in pay, job openings, and return to work are anticipated to sustain the health of the house-buying market.

Source: Business Today