INSUBCONTINENT EXCLUSIVE:
Mumbai: Shares of real estate developers with mixed exposure to commercial real estate and affordable housing projects are expected to
outperform their peers given the robust demand for both offices and compact homes
However, concerns over sluggish housing sales and ongoing liquidity squeeze are likely to keep shares of residential property developers
bounce back faster as the demand continues to be good
According to him, shares of residential projects developers will take around 2-3 years to see a major comeback from current levels.
On
Thursday, BSE Realty Index registered a 9.5 per cent drop over previous close weighed by nearly 5-20 per cent decline in several real estate
shares including Prestige Estates, DLF, Godrej Properties, Oberoi Realty and Phoenix Mills
Decline in Phoenix Mills shares was also attributed to concerns over drop in footfalls in malls
Residential real estate across India showed a 7 per cent year-on-year decline in sales at 125 million sq ft in the quarter ended December
New launches declined 15 per cent to 90 million sq ft resulting in all-India residential inventory of 1.27 billion sq ft as of December
2019, showed Kotak Institutional Equites report
consistent growth profile while DLF benefited from a high quantum of sales at Ultima (project)
Sunteck will likely report better performance in the fourth quarter of FY20 owing to the launch of the next phase of their affordable
