IANS | 27 Nov, 2023
The realty index is up 89 per cent since Mar23 bottom, following
strong sales and RBI rate hike pause. Sector valuations (PBx) are now
near the 2021 peak multiples, reducing rerating headroom, foreign
brokerage, Jefferies said in a report.
Enthusiastic customer
response means upgrades are still possible to pre-sales estimates in 2H;
though at near 15-year high multiples, room for error for property
stocks is limited, the report said. Sector valuations shot upto 2021
peak levels following a broad based rally post RBI rate pause in Mar23,
it added.
Festive season bounce has driven Oct23 sales to surge 20
per cent YoY to 50,000+ units levels in Top-7 cities. With inventory
levels still declining, and pricing strong, developers are pushing for
new launches in 3Q to capitalize on the demand.
A strong 2Q
performance (pre-sales value +55 per cent YoY) has taken the sales of
our 10-listed developer sample +35 per cent in 1H. With the strong
launches coming through in Nov'23, we believe a record 3Q is likely. We
had raised the pre-sales est. for our covered developers by ~7 per cent
in 2Q, and continued strong offtake could imply more upgrades ahead, the
report said.
Our analysis of data from Propequity for Oct'23
shows that the seasonally strong quarter is off to a good start,
following a near record 2Q. Presales are trending +25 per cent YoY by
vols (area sold) in Top-7 cities; alongside a 10 per cent YoY blended
pricing gain.YTD'23 sales volumes are up by 25 per cent YoY too and good
start to 3Q suggests momentum holding till year end, the report said.
