Real Estate Update!

Last updated: 04 Jan, 2021 | 01:49 pm

Real Estate Update!
  • Listed real-estate players have seen strong sales in the Oct-Dec period, with housing sales in India’s biggest property market, Mumbai, witnessing outstanding growth in registration. 
  • According to a report by Antique Stock Broking, there has been a major jump in the registration of housing sales in December 2020 with total registration at 18,854 (as on 30 December 2020) translating to 103% growth on quarter and 193% on-year. 
  • On an overall basis, there has been a recovery on a QoQ basis, however, the sales are still about 40% down as compared to the previous year, according to Morgan Stanley. Other markets too have shown recovery, but not to the level of Mumbai.

Factors aiding sales

  • Home loan rate at historic low (below 7%)
  • Customers during lockdown realized the requirement of better quality homes or owned homes in Mumbai
  • Salaried fence sitters taking buying decisions with the belief that the sector has bottomed out and price correction is not expected further 
  • Stamp duty cuts and developers pushing sales before Dec 31.

Outlook going forward

  • Listed real-estate players are expected to report a good set of numbers in Q3FY21 (Oct-Dec 20) and the momentum to continue in most of the markets beyond 3QFY21.
  • Although the drag of job and income losses may shrink the overall demand, reputed developers are expected to do well and increase market share due to consolidation across markets. All the listed real estate companies in residential expected to post better YoY numbers going forward.

The table below shows improving business profiles for listed real-estate companies.

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