Nifty Realty index zooms 8.5%; DLF, Godrej Properties surge 10% each

Indiabulls Real Estate, Sobha, Prestige Estates, Oberoi Realty, Sunteck Realty, Mahindra Lifespace and Macrotech Developers were up between 4 - 8 per cent on expectations of strong demand this festive

Shares of real estate companies were on a roll in trade on Wednesday on expectation of strong demand ahead of festive season, with several lenders already announcing a rate cut. Real-esate major DLF jumped 10 per cent to Rs 363.75, while Godrej Properties hit a new high on rallying 10 per cent to Rs 1,852. Both, stocks trade in the futures & option (F&O) segment, which has no circuit limits.

The Nifty Realty index has zoomed 8.6 per cent to hit a new high of 455.10 on the National Stock Exchange (NSE). In comparison, the Nifty50 index was up 0.2 per cent at 17,598 at 13:05 pm. Indiabulls Real Estate, Sobha, Prestige Estates, Oberoi Realty, Sunteck Realty, Mahindra Lifespace Developers and Macrotech Developers were up in the range of 4 - 8 per cent each.

Godrej Properties today said it achieved sales of Rs 575 crore in a single day at the launch of the second phase of its project Godrej Woods in Noida. The Mumbai-based real estate developer received an overwhelming customer response to its unique forest-themed phase named Evergreen taking total sales in the project in the past 6 months to approximately Rs 1,140 crore.
Godrej Properties in a press release said that it has sold 340 homes with an area of more than half a million square feet on the first day of launch making this one of the most successful launches in India in recent times.

Analysts believe that Tier 1 developers will gain market share, given consumers’ buying preference for reputed developers in under construction projects.

Shares of Puravankara soared 18 per cent to hit a 52-week high of Rs 124.60 on the BSE, and has rallied 28 per cent thus far in September. The rating agency ICRA on July 30, 2021 had upgraded the previous rating of the company’s instrument and revised outlook to stable from positive. The upgrade in the ratings takes into account the sustained sales momentum in Puravankara Group’s residential portfolio, supported by adequate sales in new launches as well as continued liquidation of unsold ready-to-move (RTM) inventory, ICRA said in rating rationale.

"The festive season will make the residential market more lucrative for home buyers with additional offers focussed on the season. It will largely encourage new-age home buyers and fence-sitters to opt for the residential asset class in their desired location, thanks to RBI's consistent intervention via the accommodative stance and 4 per cent repo rate that is enabling banks to keep the home loan rates low,” Nishant Deshmukh, Founder and Managing Director, Sugee Group said. “We are looking forward to the festive season to brighten the market sentiments which will result in a resurgence of the sector as well as economic growth. Homebuyers can expect to get some attractive offers and deals in this festive season,” said Deshmukh.

Meanwhile, HDFC yesterday cut home loan rates to 6.7 per cent to cash in the festive season. READ MORE