Amid consolidation, gains for realty index may continue in the near term

Ongoing consolidation to help residential players expand their market share further

There is consolidation in the real estate market, resulting in speculative trading action in the stocks of listed developers. Over the past two fiscals, the market share of the top 10 listed realtors has risen to about 22 per cent of the real estate market, up from around 16 per cent in 2018-19. 

In addition, the low interest rate regime has created demand while allowing companies to deleverage. The balance sheets of the larger developers have improved, with aggregate net debt coming down by over 25 per cent in 2020-21. Low interest rates also translate into lower EMIs for mortgages,