BSE Realty index down 1.5% in a firm market; Godrej Properties weighs

Real-estate stock update: Realty stocks were witnessing some profit-taking on Thursday, as the BSE Realty index has rallied over 23 per cent so far in 2024.

Shares of real-estate companies were seen trading with a negative bias in an otherwise firm stock market in Thursday's intra-day deals so far. The BSE Realty index down 1.5 per cent at 7,530 was the top sectoral loser.

The weakness in the BSE Realty index can largely be attributed to the sharp 5.5 per cent fall in Godrej Properties. The Group group stock alone accounted for almost 65 per cent of the loss on the underlying realty index. Godrej Properties shares today traded for the first time post the Godrej family empire split announced on Tuesday post market hours.

Apart from Godrej Properties stock, Mahindra Life, Macrotech Developers (Lodha) and Phoenix Mills were the other major losers, down 1-2 per cent each. DLF, Oberoi Realty and Sobha were the other notable losers.

That apart, stocks of real-estate companies were also witnessing some profit-taking following the recent gains. On a YTD (Year-till-date) basis the BSE Realty index was up over 23 per cent as against a 3.1 per cent gain on the S&P BSE Sensex.

On the earnings front, Lodha last week reported 10.6 per cent drop in Q4FY24 consolidated net profit at Rs 667 crore. Revenue from operations grew 24 per cent YoY to Rs 4,020 crore. 

Meanwhile, Lodha said it reported its best-ever quarterly and annual pre-sales performance with robust margins. For the quarter ended March, Lodha reported a 40 per cent YoY growth in pre-sales at Rs 4,230 crore.

In a recent interview to PTI, MD and CEO Abhishek Lodha said, Macrotech Developers will step up its investment this fiscal year on construction of projects to over Rs 5,000 crore in line with growth in sales and new supply. READ MORE

Real-estate market, mainly in cities, is said to be in a boom period, with the Mumbai Metropolitan Region (MMR) witnessed a significant 38 per cent increase in property registration value, reaching a total of Rs 54,240 crore in th quarter ended March 2024. This growth was highlighted by the completion of 60,719 transactions, according to a report from Square Yards Data Intelligence.

Leading the surge was Lodha Group (Macrotech Developers), which topped the charts in both volume and units sold, with 1,881 properties generating Rs 2,318 crore. Following closely were Oberoi Realty and Runwal Group, which secured high ranks in total sale value and number of units sold, respectively. READ MORE

Another report by realty portal, Magicbircks, reveals that consumers sentiments in India's housing market remain positive despite a rise in prices.

Magicbricks released a report 'Housing Sentiment Index' based on the survey of over 4,500 customers across 11 cities, with an overall HSI of 149.

The HSI score ranges from 0 to 200, with 100 representing neutrality. Indicating an expectation of market stability in the short to medium term. A score of 200 reflects a bullish sentiment while a score of 0 indicated a bearish sentiment, the report stated.