SME Times is powered by   
Search News
Just in:   • Equity indices break two-day losing streak on value buying  • IMF urges Sri Lanka to tighten monetary policy  • Global semiconductor sales to reach $676 bn this year: Gartner  • Tinna Rubber hits upper circuit, investors accumulate 900% returns in year  • Availability of jobs in Japan improves for 1st time in 3 yrs 
Last updated: 23 Jan, 2022  

Realty.9.Thmb.jpg Resident real estate sector poised for upcycle: MOFSL

   Top Stories
» Net direct tax collection reaches highest-ever figure in FY 22
» Musk has to manufacture here to sell Tesla cars in India: Gadkari
» Round tripping of industrial inputs by large players unfavourable to local value chains
» Sitharaman engages investors in Silicon Valley
» Modi hails India's success in achieving target of $400 billion of exports
SME Times News Bureau | 23 Jan, 2022
India's resident real estate sector is poised for an upcycle, primarily buoyed by the improved affordability, said Motilal Oswal Financial Services Limited.

As per MOFSL, decadal low interest rate regime and stagnant prices over the last seven years have driven the affordability quotient.

"The ongoing industry consolidation led by concentration of capital, 400-600 bp advantage in cost of funding for large developers and buyers' trust on organised developers will further escalate growth for large listed developers," said the brokerage house.

Besides, it said that inventory across most of the cities is at a manageable level given the industry wide launch discipline that has helped in absorbing cost pressures.

"Sustained strong demand and gradual price hikes augur well for the industry in increasing the overall profit pool, where all the organised players stand to benefit," it said.

According to MOFSL's Real Estate Investment Metric (REIM) framework, players exposed to Bengaluru and Pune markets will outperform both in volume and value terms, while the Mumbai-based ones will benefit from the long-term, pent-up demand.

In addition, the continued inflation in commodity prices as well as sharp rise in interest rates and disruptive price hikes may hamper affordability.
Print the Page
Add to Favorite
Share this on :

Please comment on this story:
Subject :
(Maximum 1500 characters)  Characters left 1500
Your name:

  Customs Exchange Rates
Currency Import Export
US Dollar
UK Pound
Japanese Yen 58.85 56.85
As on 27 Apr, 2022
  Daily Poll
COVID-19 has directly affected your business
 Can't say
  Commented Stories
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter