Shares of a host of real estate developers, which have presence in Mumbai Metropolitan Region (MMR), were in action in Wednesday's afternoon. Analysts hoped for faster clearances of real estate projects post the formation of Maharashtra government. They see a robust launch trajectory and potential rate cuts to improve real estate sales in Mumbai going ahead, which should boost Mumbai-based players such as Macrotech Developers Ltd (Lodha), Oberoi Realty Ltd, Godrej Properties Ltd, Rustomjee and Sunteck Ltd, among others.
Lodha shares climbed 3.94 per cent to hit a high of Rs 1,348 on BSE. Oberoi Realty shares jumped 5.04 per cent to Rs 2,162.45. The Godrej Properties stock was marginally higher at Rs 2,860.90. Sunteck Realty and Keystone Realtors, however, fell up to 2 per cent.
The oath-taking ceremony for the CM-elect Devendra Fadnavis is said to take place at 5.30 pm tomorrow and is expected be attended by Prime Minister Narendra Modi and nearly 2,000 VVIPs and 40,000 supporters. Fadnavis last served as the leader of the opposition in the Maharashtra Legislative Assembly. He previously served as the Maharashtra CM between October 2014 and November 2019.
Data for November suggested that registration of properties in the Mumbai municipal region rose 5 per cent to over 10,200 units on better housing demand in festive season. But registrations in Maharashtra decreased 11 per cent YoY to 1,06,899 units for the month.
The overall value of units registered soared 30 per cent YoY (down 23 per cent MoM) to Rs 15,400 crore. Year-to-CY24 units registered in Mumbai stood at 1,28,783, a up 12 per cent YoY; by value. Sales in value terms stood at Rs 1.8 lakh crore, up 11 per cent YoY.
A robust launch trajectory and potential rate cuts are likely to improve sales in Mumbai going ahead. This shall benefit Mumbai-based players—Lodha, Oberoi, Godrej Properties, Rustomjee and Sunteck, Nuvama said.
Nuvama said the average ticket size in Mumbai jumped 24 per cent YoY to Rs 1.51 crore. Of the total properties registered in Mumbai during the month, residential units constituted 80 per cent. As per Knight Frank, properties priced Rs 2 crore and above made up 23 per cent of registrations while the share of properties valued at over Rs 5 crore plunged to 20 per cent.
"We believe the buoyancy in sales would sustain driven by: i) robust business development targets; ii) pickup in launches aided by cash flow improvement; iii) interest rate stabilisation; iv) diversification; and v) market share gains. Increase in wages, employment opportunities and return-to-office are likely to keep home-buying activity healthy," Nuvama said.
"All in all, we argue Mumbai-based developers such as Macrotech Developers (BUY), Oberoi Realty (HOLD), Godrej Properties (BUY), Sunteck Realty (BUY) and Rustomjee (not rated) would benefit from strong housing sales in Mumbai," Nuvama said.
Post Maharashtra election results, Prashant Sharma - President at National Real Estate Development Council (NAREDCO) Maharashtra said its expectations from the new government include faster clearances for real estate projects, an improved ease of doing business environment, and policies that promote affordable housing.